How to buy a franchise on a budget

As an aspiring entrepreneur, you've probably already researched franchise opportunities. You know that because it offers a profitable business with proven success, this is an opportunity that should be taken full advantage of. However, few of us have the necessary amount to fulfill this dream.

According to Franciza.org.ro, the costs for taking over a franchise can it reaches between 5,000 and 500,000 euros, depending on the field, brand notoriety, location, etc. For most Romanian entrepreneurs, these amounts are difficult to cover only from their own sources.

But there are options you can consider when considering how to buy a franchise with no money down. These little-known options aren't often discussed, but they do exist. And if you play your cards right, you might just land the opportunity of a lifetime. So let's explore how you can buy a franchise on a limited budget.

How to start a franchise with no money

Not all aspiring entrepreneurs or franchisees have the funds to get started, despite their strong desire to do so. In addition to this financial limitation, it is also worth considering that, as a franchisee, you will have to pay the franchise fee, which can be between 500 and 50,000 euros, the initial investment for setting up the space, stock, etc., which revolve usually between 5,000-150,000 euros, plus monthly or annual royalties to the franchisor.

Here are the options you can consider:

• Look for low-cost franchise opportunities
• Identifies franchise brands that offer financing
• Take into account a bank loan
• Enter into a business partnership
• Consider a mortgage or secured loan

1. Look for low-cost franchise opportunities

There are hundreds of franchise opportunities in Romania. Although franchise fees and initial investment vary, there are low-cost options under €10,000 that can be pursued part-time.

This is an advantage because you can keep your current job as a steady source of income while you build your business. As the business grows, you can accumulate capital to switch to a full-time franchise.

2. Identify franchise brands that offer financing

Some franchise brands recognize that entrepreneurs do not always have all the necessary capital, so they offer financing options, sometimes even 100%.

This "loan" franchisees the money, and the amount is recovered over time from the profits generated. However, an impeccable financial history is necessary, and the part of the profit will be smaller upon repayment.

3. Consider a bank loan

Franchises are profitable businesses with a proven model, so banks are willing to provide financing for their takeover, to be repaid over time from business results.

But here, too, a good financial history, collateral guarantees and proven ability to repay the loan in installments are required.

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