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franchise funding

Four Unexpected Franchise Funding Sources

Owning a franchise is a dream come true for many people all over the United States. No matter what you’re interested in, there’s a franchise opportunity that fits your desires, needs, and skill set.

For many people, though, franchise funding is the biggest hurdle to overcome. While you may have some money saved to start your own business, opening a new company or franchise can be costly.

Keep reading to learn more about four franchise funding sources you may not have thought of. If getting the capital you need is holding you back, these franchise funding sources could be just what you need.

Franchise Funding Sources

Friends and Family

Asking friends and family for money can be a huge no-no for many people. Obviously, you don’t want to put your family in harm’s way, but if you know people who may be interested in investing in your business, there’s nothing wrong with taking out a personal loan.

Former Colleagues

Finding franchise funding all on your own can very difficult. For many people who have left the workplace and are looking for other opportunities, former colleagues could be a good starting point when it comes to finding partners.

Outside Investors

Outside investors can be hard to find for people who don’t have a lot of business connections. But this doesn’t mean that you can’t find investors that you don’t know to be part of your franchise funding opportunity.

When looking for outside investors, you’ll need to put together a strong business plan. Among other things, this plan should show how you’ll pay investors back. Hiring somebody to help you put together a business plan is wise when you’re working on finding outside investors.


The Small Business Association (SBA) offers loans to many people who simply can’t get them through normal banks. In some cases, being unable to get a loan from a major bank is actually a qualification for an SBA loan.

While SBA loans can offer attractive rates, they often don’t provide as much capital as many new business owners need. When it comes to franchise funding, though—which is often more affordable than building a company from the ground up—an SBA loan may be more than enough to get started.

Repayment terms are often favorable when you get an SBA loan, as well.

Building a franchise can be tough for many people. Once you decide what you want and are able to do, funding shouldn’t be the only thing holding you back.

After you find funding, you’ll still need to put in long hours and hard days of work. But as the boss of your business, you’ll be building something valuable for yourself and your family. For most people, the hard work is just a part of the big reward.

For more information on finding funding for your Pretzelmaker franchise, get in touch with us!