(Franchise Buy) - By SystemUser - BlogMigration. Updated May 14, 2013
If you have decided to become a franchisee, you need funding to get your doors open. Before you proceed, you should know how banks view franchises and what information you will need before approaching the bank for a loan. Banks find loans for those interested in purchasing a franchise more appealing than those looking to start their own business from scratch. Statistically speaking, franchisees are more likely to succeed than the average small business owner: 99% of all franchise operations succeed within a five-year period of time where as 65% of all general businesses succeed in that same five-year time period. Banks view franchisees as having prior history because the entire franchise is already established. If you are going to purchase a franchise and are in need of financial aid, the bank will need as much information as you can possibly provide. In order to grant you the most aid possible, the potential franchisee must provide information about the franchise business you are interested in purchasing, the business plan, his or her financial information, the franchise agreement, and information on the local area. Funding a franchise, while considerably easier than getting a loan for an entirely new business, takes research, time, and planning. Make sure you have all of the proper information before proceeding, and take advantage of any local resources for business owners that are available while you are trying to get your new franchise up and running. To find a franchise that fits your budget, visit a franchise directory such ashttp://franchisebuy.com.