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    JustPoetik's Avatar
    JustPoetik Posts: 5, Reputation: 1
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    #1

    Feb 5, 2011, 04:50 PM
    Obtaining a loan for a small franchise business
    Since a franchise is already an established business, wuld it be difficult to obtain
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Feb 5, 2011, 04:56 PM

    1 how good is your credit, that will have a lot to do with it
    2. how much profit is the business making, what does the last three years taxes show as profit
    3. Is the business up to date, I was in a old Subway the other day that I would not eat at. Is the equipment proper and working
    4. Depending on the business, how is the stock being sold, at what value.
    5. is the price a fair price, a great francihise is not worth the money if they are asking 4 times its true value.
    6. what or how is the industry doing, has there been recent changes that may hurt its value Example, not sure a Borders Book Store franchise would be worth much now adays.

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