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Your Ticket to Expansion

Follow these tips to find and manage the money you need to fuel franchise growth.

Whether you’re looking to expand to another location or aiming to build out the franchise you currently own, there are many options to keep in mind—particularly when it comes to how you’ll pay for it. From finding financing that fits your goals to ensuring you have plenty of cash on hand, the growth you seek depends on your ability to pay.

Financing Options

Once you have an updated business plan with projected financials, it’s time to determine where the money to fund those plans will come from. One way you’re likely familiar with is financing through your franchiser. They usually offer a variety of options, especially if you’ve already experienced success. After all, their growth is directly tied to yours. Once you know how much they’ll offer, you can turn to additional sources, such as friends and relatives, loans, or asset leveraging.

Working Capital

Even with financing in place, it’s critical you maintain adequate cash reserves. Covering your business over a set range of time (whether weeks or months), cash reserves ensure you can sustain your business day-to-day. Cash is important enough when you’re simply running your business. It’s even more necessary when you’re pursuing growth or getting a new franchise off the ground.

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