The Small BusinessAdministration reports that
there are morethan
franchisors in the US3500
3500
If $263,000 is a little too much for you. franchisedirectr.com lists franchises that require less than
in startup cash
http://www.franchisedirect.com/investment3/
Or go to Entrepreneur Magazine for their list of franchises that you can start for
less than
http://www.entrepreneur.com/article/246415
209 $75,000
200
$100,000
0.68%
The default rate on SBA loans toHoliday Inn Express franchiseesfor the decade ending in 2011
was just
Specifically: only out of SBA loans disbursed totheir franchisees went into
default in that decade
0.68%
2295
0.68% Of the thousands of franchise
brands whose franchiseesreceived SBA loans, only had zero defaults during that
decade.
Although none had as many loandisbursements as Holliday Inn
Express
52
http://www.bluemaumau.org/sba_franchisee_failure_rates_brand_2012
52
http://www.bluemaumau.org/sba_franchisee_failure_rates_brand_2012
Of the brands that had perfectrepayment records
were from the lodging industry12
52
http://www.bluemaumau.org/sba_franchisee_failure_rates_brand_2012
One great advantage hotle/motel franchisees have is that theyusually own the real estate the business sits on. As long as theproperty appreciates in value the franchisee can sell the land to
pay off loans ..... even if the business struggles.
In most other industries the franchisee leases the property. Oftenfrom the franchisor.
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