Can You Buy A Franchise With No Money Down | Franchise Opportunity FAQ

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FAQ: Can You Buy A Franchise With No Money Down?

Answer: According to my research and experience as a Business Broker and franchise consultant the odds of buying a franchise business with no money down appear to be remote at best. That being said, I am sure there have been a few cases where a desperate or highly motivated franchise owner has sold an existing franchise location with terms that required no money down- but these appear to generally rare. Keep in mind also that the vast majority majority of lenders and and franchisers that offer franchise financing are going to require at least 20% down.

Other Options:

Your best chance in my opinion to buy a franchise opportunity with "no money down" is to find an existing franchise business for sale in your area where the owner is very motivated and negotiable about the terms of the purchase. On line Businesses for sale directories like bizbuysell.com are a good place to conduct this type of research. You might want also to consider researching low cost franchises for sale that often offer more affordable down payments to get started. You may also want to contact franchise companies you have an interest in and ask then if they have any existing locations up for sale in your area. You just never know and might stumble upon a real bargain with great terms.

Another option would be to research franchises that offer in house franchise financing to qualified buyers. Some franchisers are currently offering some excellent incentives because of the current economic downturn.

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