How do I Finance my Franchise?
Juice franchise owners can choose among a variety of financing options
You don’t have to have trucks full of cash to start an I Love Juice Bar franchise, because there are a lot of options for financing your business. Here’s a look at some of the most common places people turn for startup funds:
Local and community banks. Local financial institutions know your community and understand the local marketplace, so they are usually comfortable lending to local entrepreneurs who have a solid business plan and a good credit rating.
Small Business Administration loans. SBA loans are backed by the government, which reduces much of the risk for banks. Interest rates tend to be relatively low, but the documentation requirements are extensive, and you must provide full collateral for your loan amount.
Home equity line of credit. If you have equity in your home, you can tap it to help fund your business. HELOCs have many advantages. They are highly flexible and sometimes have no specific repayment schedule, which makes it easier for you to manage cash flow during your business’ startup phase. You will need to show your bank that you have the income to repay the loan, and your projected earnings as a business owner won’t count in the bank’s calculations.
Retirement funds. Did you know that you can tap into your retirement funds to start a business without incurring financial penalties for early withdrawal? It requires some tricky financial maneuvering (including the creation of a C corporation and corporate retirement account, and the movement of corporate stocks), but it has the benefit of allowing you to sidestep banks altogether and make a loan to yourself. As your business grows, you repay your retirement account.
Cash. If you have enough money, you can bypass financing altogether. However, you will want to make sure you have substantial cash in reserve to navigate the startup phase of the business. If you have just enough cash to cover initial startup costs, you should consider financing a portion of the investment to conserve working capital. Of the many, many ways in which franchises outperform independent businesses, one way is very simple: realistic financial modeling that helps new business owners set themselves up to be able to grind out the startup phase of the business.
Minimum requirements for starting an I Love Juice Bar franchise
Startup costs for an I Love Juice Bar franchise range from $172,860 to $302,805. Franchise candidates need a minimum net worth of $300,000 and at least $60,000 in liquid capital. Fill out the form on this page to have us contact you with more detailed information. We’re happy to help you explore your options.