How Do I Find Investors For A Franchise
I am a new investor and would like to invest in a franchise (smoothie king). I have a prime location on a very busy highway and right next to a very popular gym. (Tampa, Florida). The costs broken down would be anywhere between 137k and 226k. I would need a 50k cash to put down and can finance the rest from a bank (so I am told). On the smoothie king website under FAQ there is a break down of all costs. Does anyone have any advice on how to do this right or would anyone like to come in on this opportunity with me?
Thank you for your help.
If there is real estate involved you could get a second mortgage on the realestate, or buy the real estate in advance for less than appraisal and refinance. Or you can get lines of equity, second mortgage on your house, etc etc. To get the loan you will need some sort of an asset, plain and simple. You need to figure out what you have or what you can get that will have 50K worth of un used value that you can loan against.
Good Luck,
Kyle
This is an active topic with me as I am trying to put togeher a deal for a Chickenfranchise in Tampa. Site selection is done.
Here is the plan. A full business plan is being developed for acquiring the property, developing the building, doing the build out, and acquiring the franchise. Traffic counts and anticipated revenues are forcasted.
We will aproach a mezzanine financier for the A and D. We will then seek a 1031 investor for the building - show him a 7 year lease with kickers.
The operator will be the tenant. I will structure the first and second level financing.
Here are some of the important issues:
1. Credit worthyness and/or experience for the franchisee. Note - that is NOT me. The experience franchise came to me - I am the property guy. The franchisee has the francise buy no money for his location.
2. Getting the A and D financed - long enuf to get to build out and operations.
Good luck with your deal.
[addsig]
Hi, Gregg, I am developing a great niche business that I want to offer as a franchise some day, so I'm interested in this topic, wishing to help folks buy my franchise. Questions: what is the A & D?
Do you offer your services to others who are seeking help with financing of franchises or seeking investors for the land/building purchase for their location?
Thanks,
Terry
Quote:
On 2003-10-23 02:08, concrete wrote:
Hi, Gregg, I am developing a great niche business that I want to offer as a franchise some day, so I'm interested in this topic, wishing to help folks buy my franchise. Questions: what is the A & D?
A nd D = Aquisition and Development
Do you offer your services to others who are seeking help with financing of franchises or seeking investors for the land/building purchase for their location?
Sorry , I do not..... except here
_________________
Gregg Fous
Investor/Developer
"If you wait for all your ducks to get lined up, you will never get into the water" [ Edited by GFous on Date 10/23/2003 ]
Im in the restaurant business and opinion is that if a franchisor hasnt done their homework with the money people,THUS MAKING IT EASIER FOR THE FRANCHISEE,Do you think they will be thier when you need guidence or consultation?Ive seen quite a few franchisees belly up because they needed help or advice and the area rep. doesnt have the time of day.ANYWAY WHAT DOES THE PROPERTY OWNER DO WHEN THEY CLOSE.
Steve makes a good point - make sure thy will be available after the franchise purpose and have it in writing. If the franchise does not work out, and they were not available for consultation you will have grounds to seek restitution.
Regarding setting up your firm as a franchise. It is not too difficult, it will take time and money. The most important reason why people buy franchises is because they are buying a system. A system that has a history of success. You can find an attorney or firm that will do this in the back of those franchise magazines at book stores and grocery stores. If you prefer a local person, contact your local SBA office, SBA SCORE group, or a local small business networking group.