Franchise ideas – with comparethefinancialmarkets.com

Looking for the best franchise ideas can appear a bit daunting! With hundreds of UK franchise opportunities available a potential investor could feel overwhelmed.

That’s where Compare The Financial Markets comes in. Contact us for free and impartial advice.

Franchise ideas – start-up

Even the best franchise ideas require capital; to set up a workplace, buy equipment, or to pay for that very first marketing campaign. For anyone considering investment in a franchise opportunity it’s no different – from buying the licensing rights to the franchise, to covering the business set up and operating costs. 

Franchise ideas – specialist banking options There are many franchise ideas/opportunities open to investors. If you are looking to finance your franchise, a franchise specialist bank is a necessity.

They assess franchise ideas/opportunities, evaluate franchises, and monitor the ongoing performance of franchisees. Preferential terms are often available, particularly for well-established and proven franchise ideas/opportunities, whereas banks without franchise units ordinarily treat franchises in the same fashion as a new, independent start-up enterprise. 

Franchise ideas – level of finance

The level of finance available from franchise specialist banks depends on the strength of the franchise – and the strength of your business plan. For an established franchise, a bank should lend up to 70% of the total start-up expenditure, including working capital. Less proven franchise ideas can expect less. The bank will require security for the loan, usually in the form of a residential property with sufficient equity.

Franchise ideas – methods of finance

For investors who lack financial backing, the Government-backed Enterprise Finance Guarantee Scheme supports franchise ideas/opportunities, but only in conjunction with a strong business proposal.

A bank’s Franchise Unit will discuss whether you qualify for finance under this initiative.A strong business plan is required by the bank to consider financial support for your business. Demonstrating an understanding of your chosen market, and the ability to meet the financial commitment you are undertaking, is crucial.

As with any business start-up, adequate finance is required, not to mention an in-depth knowledge of the sector, and the potential pitfalls and stumbling blocks. Thorough research is an absolute must and professional advice is invaluable.

At Compare the Financial Markets we understand the franchise business and can provide the information you require to make a success of your franchise choice.

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