How to Finance Your Pretzelmaker Franchise

Step #1 Sign the Franchise Agreements

1. A Franchise Agreement is a legal, binding contract between a franchisor and franchisee. It overall provides the investor with a product, a branded name and recognition, and a support system.

2. A franchise agreement will be required to get approval for funding as well as securing a location in most cases.

Step #2 Finding a Location• Start scouting out potential locations in

your development area.• Don't be afraid to ask us for assistance.

We have a real estate team that will assist you in identifying potential locations.

• We look for locations with high foot traffic such as; malls, lifestyle centers, among other areas.

Step #3 Understanding Costs• Once a location is found, it's

important to determine total costs.• Total costs include; franchise fees,

equipment, construction, architecture design, permitting, rent, etc.

• Working capital will be a percentage of the total cost.

cc: rafael-castillo - https://www.flickr.com/photos/7972895@N02

Step #4 Methods to Finance a Franchise

1. Cash2. 401k Rollover3. Conventional Loan4. Leasing5. Lending Networks6. SBA Loans

CashUsing your personal money could lead to debt-free ownership. We see our franchises cost $154,500 -

$237,750. If you wish to open multiple stores, make sure to leave yourself enough working

capital.

401k RolloverIn some cases, you may be able to use your 401k

to finance your franchise. There are several requirements to using your 401k. One rule is that you may no longer work for the company where

your 401k is housed.

Conventional LoanConventional loans are common in franchising. Lenders look

for real estate collateral used to mitigate risk. Terms are generally 5-10 years.

LeasingSome banks will allow equipment leasing, but you will still

need the funding for the building cost and other fees.

Lending Networks

Entire lending networks exist

to help franchisees

find financing. A quick

Google Search will display

hundreds of vendors.

SBA LoansSBA loans are the most common loan types we see. They

mitigate risk for lenders by offering a guarantee up to 80% of the loan amount.

Are You Ready To Open a Pretzelmaker Franchise?Please Visit http://www.pretzelmakerfranchise.com/

Disclaimer:This information is not intended as an offer to sell, or the

solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states

regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we will not offer

you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements

in your state. Franchise offerings are made by Franchise Disclosure Document only.

Business Plan Resources

1. You can find the SBA financial form here: https://www.sba.gov/sites/default/files/forms/SBA_Form_413_7a-504-SBG.pdf

Sources: http://www.franchise.org/how-to-finance-your-franchise

https://en.wikipedia.org/wiki/Franchise_agreement