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Do I have any shot at buying a franchise?

So, here's my situation. I am 34 years old and have been managing/directing corporate IT departments for 10+ years. I make a healthy 6 figure salary. I have also owned my own IT consulting company, but am more interested in buying a franchise. I really don't have any liquid capital and currently have about 20k of debt that should be paid off within the next 8 months. I have just relocated, so don't currently own my own home. I would seek out a loan to cover initial costs, but with no/negative net worth, i don't know if I even have a shot. Would I be able to buy a franchise at this point?

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Answers (13)
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IC Tool Suite
Sarasota County, FL

Hello John,

I may be able to assist on the funding side. Do you know how your credit report looks? How soon are you seeking money and how much would you want?

John Briches
Account Executive
Macro Business Capital
941-447-8370
johnbriches@mbcfunds.com
www.mbcfunds.com/johnbriches

Aug 19, 2010
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Biz2Credit LLC
New York County, NY

John ,

In case you have 401K , you can roll it over in a self directed IRA plan without any tax liability. Also you can get seller financing. Both these will cover 20% equity component and rest you can look at www.biz2credit.com

Biz2Credit have over 75 banks and 130 products to match your varied business credit needs across the country. You can fill out a free loan application on www.biz2credit.com and see your options and decide to work with lenders either on your own or through a dedicated case manager from Biz2Credit at a low monthly cost. Once you get matched with a lender, you can use the document management system to upload and maintain all the documents , share it with lenders and other partners you work with. Also being a registered member helps you to get free updates on new lenders ,lending product and tools to build and manage your business credit from our partner, Dun & Bradstreet

Aug 19, 2010
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Great Clips, Inc.
Franchise Development Resale Coordinator

John,

Great Clips might be a great choice for you. Check out our bizbuysell ad, http://www.bizbuysell.com/franchise-for-sale/great-clips-hair-care-franchise/.

You can also visit us at www.greatclipsfranchise.com! We hope to hear from you.

Aug 19, 2010
Katie Shugert
Niche Marketing 247
Owner

I have a franchise like system with minimal investment. Bill Fields former CEO of Walmart is heading global expansion for the company.
518-956-4651 kshugert@yahoo.com

Jul 29, 2010
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BestBizFit LLC

John, franchising is an area of expertise for me and the short answer is no. Your situation would be difficult at best even in a good credit market. If you have a retirement account to borrow against or use as capital then maybe. If that applies to you; there is a way to leverage those funds without taxes, penalties or debt service. Your next best option would be an investor. If that is not an option then I suggest you look into direct sales. We have added a few top tier concepts to out portfolio if you wish to learn more. Good luck.

Jul 22, 2010
Lisa Molina
Life Beyond the Rat Race
live like a CEO, play like a kid
Los Angeles County, CA

John, are you still searching?
You don't have to incur a lot of debt to have a very profitable business.
Do you believe in Personal Development?
That is the industry we are in, and I am seeking an entrepreneur who is ready to have their own business.
We are like a franchise only without the hefty franchise fees and restrictions.
We have a proven platform that allows you to profitable right away.
Contact me at 480-575-5670 (i live in LA) or lisamolina@lifebeyondtheratrace.com

Jun 29, 2010
Mel Jones
SellingRestaurants.com.
Placer County, CA

There are rare cases where if you've got good credit you may be able to take over an existing shop that's not doing well. For example, I have a pizza franchise for $75k + $15k franchise fee. The owner is the regional director for the franchise and he had to take it back from a franchisee who was a poor operator - they used to store for a baby sitting facility for their three small children; they had no idea how to reach out to the community; and were "build it and they will come" type people. In this case, if you showed promise, the owner may take a chance on you with some 40% down. Check out more article on our website at www.sellingrestaurants.com .

Jun 7, 2010
"'AZ" & Global - Charlene Hines
Ranger Energy Services
Executive Vice President
Maricopa County, AZ

Hi John,
You can contact me and discuss your scenario further. You don't necessarily have to have a lot of cash to work with this franchise. Contact me at info@charlenehines.com or IM me on SKYPE at charlene.hines to discuss the parameters. Which state are living in now?

Always a pleasure,
Charlene Hines

May 30, 2010
Kevin Blank
........................................
PA
Premium Broker

John,

Some of the franchises I have in my database do not have a net worth requirement. Your background will help. I am assuming you want an IT franchise but want to confirm that before I verify that the franchises don't have a net worth requirement. Let me know what industries you would be interested in so I am not wasting too much time checking with ones you wouldn't be interested in anyways.

Kevin Blank

Apr 5, 2010
Jon Holmquist
Edgemaster Model 400 sharpener
President
Marion County, OR

Hello John, you don't say in which state you live so you might check out our offering and see if we would fit your profile. We are very low entry and new and growing. Check us out at www.edgemasteroforegon.com. Good luck with your search. Jon at EMS

Apr 5, 2010
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Biz2Credit LLC
New York County, NY

John ,

In case you have 401K , you can roll it over in a self directed IRA plan without any tax liability. Also you can get seller financing. Both these will cover 20% equity component and rest you can look at www.biz2credit.com

Biz2Credit have over 75 banks and 130 products to match your varied business credit needs across the country. You can fill out a free loan application on www.biz2credit.com and see your options and decide to work with lenders either on your own or through a dedicated case manager from Biz2Credit at a low monthly cost. Once you get matched with a lender, you can use the document management system to upload and maintain all the documents , share it with lenders and other partners you work with. Also being a registered member helps you to get free updates on new lenders ,lending product and tools to build and manage your business credit from our partner, Dun & Bradstreet

Apr 3, 2010
Rob Goggins
Great Clips, Inc.
Vice President of Franchise Development
Carver County, MN

John, most lenders these days will want to collateralize your loan. If you don't have any collateral it will be challenging (though not impossible) to obtain the necessary funds to start a franchise and to get it to the point where it's delivering the kind of returns you need. Mr. Cutler mentions one option - utilizing your 401k/IRA assets to fund the business. Another option is to pursue franchise concepts that have in-house funding.

Keep in mind though, that the primary reason for business failure is lack of appropriate financial resources. It's one thing to secure the necessary capital to start a business, but quite another to secure enough funds to grow the business, see it through any rough patches as well as take care of your personal needs until you can live off the profits of the business. When planning, think like a Boy Scout - hope for the best but prepare for the worst.

Apr 2, 2010
Robert Cutler
Attorney
New York County, NY

John, do you have a 401(k)? If so, you may be able to roll the funds into a self-directed IRA which in turn can invest in the franchise without incurring any tax liabilities or penalties for early withdrawal. It's a complex strategy and you will need to hire a tax professional to properly structure the investment vehicle, but it's one approach that you may be able to use if you do not have any liquid assets.

Apr 1, 2010

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