Congressman Sestak Authors Small Business Lending Promotion Act

Washington, D.C. – Today, Congressman Joe Sestak (PA-07) introduced the Small Business Lending Promotion Act of 2009 to make one of the Small Business Administration’s (SBA) most successful pilot programs permanent. Since its creation in 1995, the Community Express Lending Program has been a critical source of capital for many small businesses including women, minority, and Veteran-owned businesses. However, due to its status as a pilot program, the Community Express Lending Program is at constant risk of termination and faces artificial caps on the value and volume of its loans.

“In these difficult economic times, it is more important than ever that we support our nation’s small businesses, which create more than 70 percent of jobs nationwide,” said Congressman Sestak. “The past 14 years have shown that the Community Express Lending Program is an effective resource for entrepreneurs and should be a permanent fixture of the Small Business Administration.”

The SBA created Community Express to provide quick and affordable small business loans of as little as $25,000 to established small businesses and startups. Loans provided by the Program represent approximately 12% of current SBA loans and 25.6% of all SBA loans to minorities and socially or economically disadvantaged entrepreneurs. The delinquency rate per-dollar for Community Express loans between 2002 and 2007 was 7.80% as compared to 9.91% for the SBA’s overall 7(a) lending program.

Elevating the Community Express Lending Program from its current pilot status eliminates the risk of termination and artificial caps on the number of loans that may be issued. Such limits only apply to the SBA’s pilot programs.

“During this period of unaffordable and inaccessible credit, small businesses need programs like Community Express more than ever,” the Congressman said. “For many entrepreneurs, such programs are the only viable source of capital available.”

Born and raised in Delaware County, former 3-star Admiral Joe Sestak served in the Navy for 31 years and now serves as the Representative from the 7th District of Pennsylvania. He led a series of operational commands at sea, including as Commander of an aircraft carrier battle group of 30 U.S. and allied ships with over 15,000 sailors and 100 aircraft that conducted operations in Afghanistan and Iraq. After 9/11, the Congressman was the first Director of “Deep Blue,” the Navy’s anti-terrorism unit that established strategic and operations policies for the “Global War on Terrorism.” He served as President Clinton’s Director for Defense Policy at the National Security Council in the White House, and holds a Ph.D. in Political Economy and Government from Harvard University. According to the office of the House Historian, the Congressman is the highest-ranking former military officer ever elected to the U.S. Congress.

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For more information on starting your own business visit: http://OpenAFranchise.com

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Location, location, location – Where are my customers?

By Rob Collins

In this information age, where data drives decision-making, Business Intelligence is key to the health and vitality of a business. Much of this information is utilized to determine the bottom-line of operational factors such as what products are being sold, if the business has the appropriate amount of employees, how much is being spent over a particular time period at a particular site, and quite possibly who are the customers. Most often underutilized, and in many instances overlooked, is the where aspect. The site itself may be under scrutiny, it could be too small, have poor visibility, it may have limited parking, may be either freestanding or in a shopping center, and it may not be on a highly traveled street. There was a time when more franchises or sites had the “Field of Dreams” mentality - “If we build it, they will come” would mean more business for a company, but with our tightening economy and more intelligent consumers who are creatures of habit; this is a great opportunity for a business to rethink their locations in respect to their existing sites, the competition, and most importantly, the customer.

“Location, Location, Location” – you have heard that old adage by real estate agents for years and it holds very true in its importance in any business. Geographic Information Systems, also known as GIS, has proven to be an extremely valuable tool for Market Research and demographic analysis. Would you want to build a high-class spacious development of “martini ranches” in a heavily industrialized area, a children’s day-care center in a retirement community, or would you build a mega-sized shopping mall on an ice shelf in Antarctica? The answer to those questions are no, no, and absolutely not. The advantage that GIS can bring to you is the integration and analysis of various sources of data into one system with a visualized result. This can be an extremely helpful tool in determining new markets to expand to, or even potential contraction and consolidation within a store chain. Let us take a hypothetical store chain, X Store to illustrate the point.

The customers
X Store has been a local chain for the past decade. They are now in a position to expand to new markets, but only want to do so where there is a competitive advantage and where they will still be in close proximity to similar clientele. To determine their existing customer patterns, X Store has stored all of their point-of-sale (POS) data in a large database, which includes the customer’s name and address. The locations of each of these customers can be created and pinpointed on a map, through the process of geocoding, an algorithm that provides a Latitude-Longitude coordinate point to a street address, which is one of many features of a GIS. Nationwide street centerline data is often provided within Business-centric GIS programs such as ESRI’s Arc GIS Business Analyst and REGIS (Real Estate GIS) by SitesUSA, an add-on to MapInfo Professional.

Now that we know where all of X Store’s customers and stores are located, we can do an analysis of commuting patterns, drive time from the customer to the site, and target areas that may need more advertising attention. We can also determine the proximity to major transportation thoroughfares, such as highway interchanges and junctions. Through the creation of customer scatter grams from geocoding their addresses, decision makers can determine market reach, competitive businesses, prevailing demographics, and which stores may be under-performing or even possibly over-performing due to factors beyond internal operations. Much of the existing and forecasted demographic data is now available at the Census Tract, Block Group, and even the ZIP Code level. Lifestyle demographics, such as Community Tapestry segmentations in ESRI Business Analyst and Business Analyst Online and MOSAIC in REGIS, such as spending patterns based on age, income-levels and media preferences, can be summarized at these levels.

Have you ever wondered why they sometimes ask for your ZIP code at the department store? Well now you know!

The competition
In order to gain some sort of competitive advantage, it would be extremely useful to know where the competition is located. Business GIS packages, such as Business Analyst and REGIS have this information from sources such as infoUSA, and the Directory of Major Malls, already built into the system, and can be queried out by either the name of the business, size of the business, or even the type of business by North American Industry Classification System (NAICS) or Standard Industrial Classification (SIC) code.

Commercial real estate companies often utilize GIS to display sites that are currently for sale or lease. The street addresses from all of the aforementioned sources can be entered into a database and subsequently geocoded into a displayable map layer.

The results
Now that we’ve created coverage maps of the existing customer patterns, demographics, stores, competitor locations and existing sites, we can analyze the proximity and relationship to one another. Through these analyses, one can determine the best possible locations to add a new store. This capability also opens the door to potential new customers. GIS is also helpful in determining the most efficient supply-chain management. A more accurate depiction of what types of customers seek your business is now discovered. There is now a target for your business to market as a result of a thorough location analysis.

Many have said that a picture can tell a thousand words, a map containing vital Business Intelligence can tell executive decision makers a much more detailed story. The where aspect plays a vital role in determining why things may be happening within a business.

About the author:

Rob Collins has 15 years of applied Geographic Information Systems experience having worked as the Market Research Analyst for the former Fay’s Drugs chain of super-drugstores in the Northeast, in recent years as the Market Development Manager for AAMCO Transmissions in Horsham, Pennsylvania, and most recently as a GIS consultant to Hand & Stone Massage in Toms River, New Jersey. Mr. Collins has also been involved in several government related GIS contracts such as the creation of a bio-security GIS which tracked the location of the food supply chain for the New York State Department of Agriculture & Markets from the source (farms) to the distribution points, processors and to market. He is currently seeking GIS-related employment in the Philadelphia area and can be contacted at RMCollins@aol.com

Interested in exploring Franchise Ownership? Visit: http://www.OpenAFranchise.com

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Firestorm Franchising and S&S TV Enter Strategic Agreement

AUG. 17, 2009 - ROSWELL, Ga. – Firestorm Solutions LLC, a national leader in crisis management, business continuity, communicable illness/pandemic planning and vulnerability analysis, has entered into a strategic partnership with Safe and Secure TV Channel, creating the industry’s leading preparedness information portal.

The relationship makes Firestorm’s planning and crisis management knowledge -- crucial to mitigating the outcomes of all types of disasters -- available through Safe and Secure TV Channel’s broadband internet television channel and e-magazine formats. Through existing Firestorm partners and clients, approximately 2.6 million businesses and their 25-plus million employees will have access to the content on demand.

“This will be everything you need to know, when you need to know it,’’ Firestorm President/COO James W. Satterfield said. “All disasters are local, and our partnership with Safe and Secure TV Channel will allow us to deliver difference making information in real time to the people who need it.’’

Safe and Secure TV’s production capabilities and media platforms will offer customized programming and editorial content related to Firestorm-certified training courses, consulting services and franchise opportunities to an existing opt-in audience of more than 185,000 emergency first responders.

“Over the last two years, Safe and Secure TV Channel has secured significant content relationships with the Department of Homeland Security, and now our substantial partnership with Firestorm makes for one of the largest portals of information for business and the public, ‘’ said Safe and Secure TV Channel President Gerard Ferri, a 30-year television veteran who built and operated production facilities which housed major cable networks such as Discovery Channel, BET and The Learning Channel. “The technology of Internet broadband television on demand is rapidly being accepted as the way businesses and their employees get up-to-the-second, vital information, training and overall communication. ’’

Firestorm (Franchise Information) employs a unique PREDICT. PLAN. PERFORM. ™ methodology and provided on-site communications/crisis management support at Virginia Tech after the tragic shootings in 2007. Its Expert Council includes Lt. Gen. Russel L. Honorè (U.S. Army, ret and former U.S. Surgeons General C. Everett Koop and David Satcher. Firestorm recently began awarding franchises to address the distinct local vulnerabilities and preparedness gaps that exist nationwide.

The global health crisis presented by the H1N1 swine flu pandemic adds urgency to the rapidly growing market for preparedness content, which includes the first-responder community, corporate America and an increasingly disasterwary general public. Other significant drivers for the business continuity planning and consulting industry include the increase in natural disasters related to climate change; the ongoing threat of terrorism at home and abroad; and the Congressional mandate that the Department of Homeland Security and FEMA establish a certification program for Business Continuity Plans in the private sector (Public Law 110-53, Title IX).

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The Franchisor's Qualification Process

By: Dennis Schooley

One of the initial things you should strive to understand is the level of development that the Franchisor's Candidate qualification system has reached. Your first reaction to that might be 'Why do I care about a Franchise Qualification system - I only care if I get a Franchise or not?' I would suggest that you should care a great deal.

After all, if the Franchise Candidate qualification system hasn't been well developed, it may be a reflection on the business of the Franchise itself. The most important asset of any Franchise system will be its people, including both Franchisees, and Franchisor staff. Almost all companies will confirm that to be the case. They say it even if they don't believe it. They say it even if they don't actually put systems in place to ensure they add the best people, and nurture their development over time. So how do you determine if the statement matches the execution?

If people are the most important asset, it would follow that the system of finding, qualifying, and granting Franchises to the best Franchisees would be a well thought out, and well developed system. Doesn't that make sense to you?

If there is no formal step-by-step system to provide information to both parties then it may be an indicator that there is something amiss.

A good system will be able to provide you regular information to help you make an informed business decision about joining as a Franchisee. It should also provide the Franchisor with information about you to help them make an informed decision as well. That decision should be whether you qualify as someone they can describe as one on their 'most important assets'.

If the system doesn't allow for a step-by-step, give and take, system of information flow, then perhaps the other business systems within the Franchise aren't as well developed as represented either. The information system shouldn't be so fast that you are overloaded, but it should be steady enough that you can continue to assess, and deliver information, at a pace that makes sense for both parties.

If the system is too fast, for example if you are given Disclosure Documents within the first week of the due diligence process before many other things are assessed, I would suggest there is something wrong. To rush is to err.

On the other hand, if the system is too slow, you won't get a true flavor for the company because of the sporadic nature of the flow. Culture is important, and a steady flow of data will give you a better feel for the culture of the business than trading information every three weeks for a six-month period. If you are not looking to make a decision with 30 to 120 days, I would suggest that you wait until you are to that point before you engage fully in a Franchise Qualification system. That doesn't mean that you need to be in business in that timeframe. It just means that you would like to make a decision in that timeframe.

Some systems will include a step-by-step system where you will receive information from the Franchisor, and then you will be required to provide some information to them. Once you provide the information, then the Franchisor will send you additional data to help you gain more intimate knowledge...and so on.

The reason for that type of system, which I would judge to be ideal, is that each of you is illustrating commitment to the process. This is an important factor for the Franchisor to determine because it is a great indicator to them that you will be able to follow and use a good system to your advantage. That's what Franchising is all about. The Franchisor has invested a significant amount of time and money to develop a proven system that is designed to earn all stakeholders a maximum return. Therefore the Franchisor must determine that each new Franchisee is willing and able to follow a good system. What better place to start than the basic evaluation system.

In today's world, that system should use various media to communicate with you including email, telephone, mail or courier, Internet, in person etc. Again, this will demonstrate the Franchisor's use of current technologies and methods to really get to know you, and to stay current in an ever-changing global environment.

If the Franchisor does not have a good step-by-step information flow and due diligence system then that alarm bell in your head should go off.

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Dennis Schooley is the Founder of Schooley Mitchell Telecom Consultants, a Professional Services Franchise Company.

View more information on Franchises here: http://www.OpenAFranchise.com


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Why Do I Pay a Royalty Fee?

By: Dennis Schooley

The first point to make about Royalties is that good Franchise systems should look at them not as a payment but rather as a remittance. It is the Franchisor's share of the income derived from customers or clients. The Franchisee collects that fee along with all other revenues from the customer.

It's an important concept because it emphasizes that the customer ultimately pays for everything, including the Franchisor's royalty, the Franchisee's overhead, all costs of sales, employee's salaries, and the Franchisee's profit. Therefore it's all about the customer - as it should be.

The Franchisee should want the Franchisor to earn a significant amount of royalties because that's really the oil that makes the engine run. Each Franchisee collects and remits a small portion of that oil to the Franchisor. All elements of the system can continue to improve as long as the royalty stream is strong.

The Franchisor's royalty will be based on the fact that they have provided a system and strategy that has ultimately served the customer. The Franchisee delivers that system to that customer. The royalty represents the Franchisor's share based on the various parts of the Franchise system, which has four elements.

The four elements of a Franchise are:

- Brand
- Operating System
- Support System
- Franchisee

Brand - the name associated with the services delivered in a memorable and satisfying experience to the customer

Operating System - institutionalizes the excellent service delivered in a memorable experience so it can be done over and over again from Franchise to Franchise in a consistent manner

Support System - helps the Franchisee get better and better at delivering the service in a memorable experience & helps a Franchisee improve their performance

Franchisee - the individual motivations or reasons for being in a good system, as well as the talents and experience delivered to the business.

The Operating and Support systems will generally provide access to advice at the level of professional consultants in the fields of marketing, management, advertising, execution of the delivery of the product or service, customer support, etc. The cost of these types of consultants on the open market will often far exceed the value of the royalty fees that are remitted by the Franchisee that participates in a system that delivers these items from a position of experience. In fact, it's the exact experience the Franchisee requires as opposed to open market advice.

Now here's the test. If each of the four elements of a Franchise system is evaluated in terms of the percentage of contribution to the overall success of the business, then the royalty can be assessed in a proper light. Many people will say that each of the four elements contributes equally - or 25%, to the overall success. That means that the Brand, Operating System, and Support System provide 75% of the success formula. Therefore, as long as the royalty is less than 75%, it's a good decision to participate in the system. That's a little silly, but it emphasizes the point.

Most royalties range from 2% to 10% depending on the type of system, so as long as the Franchisor's systems contribute 10% or more to the success of the business, it makes sense to participate, and remit the collection of royalties to the system.

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Dennis Schooley is the Founder of Schooley Mitchell Telecom Consultants, a Professional Services Franchise Company.

View more information on Franchises here: http://www.OpenAFranchise.com


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Handyman Franchise - Executives Wanted

Every time I talk to a client about this Handyman Franchise I ask myself "Why don't more people think about owning this type of Franchise?"

I think it is because they think they will be fixing things and that is not the case. Most of the owners are managing the employees, that is who does the handyman repairs.

This type of Franchise is:

- Recession Resistant
- Low overhead
- Low startup cost
- Quick ramp up
- Highly successful
- Easy to operate
- And more!

Yet most of the people that inquire about this Franchise think they are going to be a handyman. Nothing could be further from the truth. The fact is, most owners of this Franchise are good at management, networking, sales & follow up. The main factor they all have in common is People Skills.

Ex-Executives would do well to look at this Handyman Franchise. The cash investment is around $50k & if you have good credit you would qualify for financing of the balance of the total amount.

Interested in learning more? Visit this page.

Or you can watch a 3 minute video here.


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Recession Resistant Franchises

As a Franchise Consultant I get asked all the time "Which Franchises are recession proof?"

My answer: None of them. There is no such thing as a Recession Proof Franchise. Some are more recession resistant than others, but I don't know if a single one that is recession proof.

Some of the Franchises that I see that are doing better than others in a down economy are Senior Care Franchises, Auto Repair Franchises, Home Repair Franchises, & Fitness Franchises.

These are all things people need or really really want. They are the last things that they will or can give up.

If you are considering starting a Franchise in a down economy, make sure to do your due diligence. Talk to existing franchise owners in the system you are buying, make sure to ask them what the challenges are, how is the economy affecting them, what is the home office doing to help you right now?

Good luck and happy Franchising.


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24 Hour Fitness Franchise - Is it right for you?

SNAP FITNESS, Head Quartered in Chanhassen, MN, has developed a unique health club concept that has taken most of the overhead and cost structure out of the business and has given customers what they want: Quality, Value, and Convenience.

With well over 1900 clubs open in markets throughout the USA they are changing the way Americans exercise. Their modern facilities are compact in stature (2,500 sq. ft.) but are loaded with state-of-the-art exercise equipment without the overhead of a “big box” health club. By going further into neighborhoods where the full service clubs can’t go, they are capitalizing on an underserved market.

Clubs are available to members 24-7 through an elaborate key-card and security system, making them safe and convenient.

Their track record of success has substantiated that people will forgo the expense of a full-service health club in favor of an affordable, convenient alternative.

· Absentee Ownership
· Flat rate royalty of only $399/mth
· Keep the security of Full-Time job
· Open Multiple Units
· Limited Time Commitment
· No Employees
· State of the Art Equipment
· Low Investment Level
· Tremendous Demand
· 24-7 Key-Card Access
· Safe & Secure
· Affordable
· No Contracts to sign

The company encourages its franchisees to commit to opening 3 clubs over an 18 month time span. A discount in the franchise fee is offered for doing so. The simplicity of the business makes this relatively easy to do.

$75k Cash Investment is required with this Franchise.

To receive more information about this Franchise, please fill out the form on this page.

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What is the best franchise?

As a Franchise Consultant I get asked all the time: "What is the best franchise?"

The "best" franchise is relative to what business model fits you the best.

I would love to tell you that every franchise is right for you, but that would not be true.

First thing you need to do is figure out what business model you want to operate.

Things like:

- Do you want employees or not?
- Retail, Wholesale, Mobile, Home or Office?
- B2B or B2C?

etc...

No where in there was Brand name or $$ right? That is because those things should come after you decide what business model fits.

If you would like to take our Free Franchise Matchup Test, feel free to email me directly: info@openafranchise.com

Or visit: http://UnitedFranchiseConnection.com


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Molly Maid Cleaning Franchise Information Video

Interested in learning more about the Molly Maid Cleaning Franchise?

Visit this page or watch the video below.



Visit this page for more information on this franchise.

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Dry Cleaning Franchise Opportunity

Interested in owning a Dry Cleaning Franchise? Visit this page or watch the video below.



Visit this page for more information on this franchise.


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Pizza & Food Franchise Information

If you are interested in more information about Pizza & Food Franchises, you can view the video below or visit this page.




Visit this page for more information on this Franchise.

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10 Things to consider when opening a Franchise in a bad economy.

As a Franchise Consultant I talk to a lot of people that are interested in owning their own franchise. The one thing I keep hearing is that they want to wait until the economy gets better. Most of them don't realize is that the reason they are looking right now is because of the economy.

Things to consider:

1. Real estate is at it's lowest rates in years.
2. Landlords are in a negotiating mood.
3. Prime locations are available due to other closures.
4. Franchising thrives in this type of economy.
5. Employees are easier to find.
6. Employees cost less.
7. Contractors are bidding lower on build out costs.
8. Equipment costs are lower.
9. Financing is not hard to get IF you have good credit.
10. You need about $30k to $50k cash to start.

If you would like more information on Franchising visit: http://OpenAFranchise.com

Or call: 484-948-1156

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Free Ebook on Franchising

Need information on how to open a Franchise?

Here is a Free eBook from the FTC: http://eBookOnFranchising.com

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Free Business Plan Download

Are you starting a business?

Here is a site I found that gives away a Free Business Plan via download:

http://BusinessPlanForFree.com

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Food Franchises

New site launched:

http://www.Food-Franchises.com

Visit this page to learn about Food Franchises.


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Franchise Boot Camp Announced

FranchiseProBootCamp.com announces an upcoming Franchise Boot Camp for Franchisors & Franchise Executives.

If you sell Franchises for a living, you may want to attend this online Boot Camp Training Session.

Visit: http://FranchiseProBootCamp.com




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Recession Proof Franchises

It's no secret that people are losing their jobs-it's an epidemic. These talented people are simply victims of our current economic circumstances. Jobseekers won't find many attractive employment options in the market today, and this may be the situation for quite some time.

As an alternative, many people are looking into buying their own franchise. In tough times like these, it's essential to focus on franchises that produce good results in bad market conditions. Though no business is truly and absolutely recession-proof, a number of industries seem to thrive--and you should focus your research efforts on them. Here are some helpful examples of industries to look into:

People will buy, whether times are good or bad. What do people consider a necessity rather than a luxury? Businesses that provide necessities will thrive during a recession. One example: haircuts. Regardless of the economy, hair grows and has to be clipped. Another example is tax preparation: Everyone needs to file a tax return each year, and many people find the process too complicated to do themselves. Last is child care; Quality providers in this space always seem to be operating at near-capacity.

Low-cost businesses. Consumers tend to downgrade their spending patterns during a recession. This dynamic benefits fast-food companies such as McDonald's, at the expense of more upscale and expensive restaurants. Decreased spending patterns also benefit companies that sell used items (such as clothes, games, sports equipment, CDs, etc.), as an alternative to buying new items from a full-priced retailer.

Businesses paid for by third parties. When a pipe bursts and floods your basement, it has to be fixed immediately by a professional. This dynamic also applies to automotive repair shops: Cars get damaged in accidents in every type of economic climate, and they need to be fixed. In both cases, repair costs are covered by insurance so franchises offering such services tend to be more immune to recessionary times.

Products or services with a rapidly growing demand. Follow a demographic or sociological trend that supports strongly increasing demand, and the business will do very well even in tough times. A great example of this in today's market is the senior care industry. Baby boomers are getting older, and a host of senior-care franchises are growing rapidly and doing very well. Outplacement agencies, offering services designed to assist the unemployed are also expanding from growing demand.

Services that offer a chance to "escape" from the everyday grind. These businesses typically offer entertainment options to their customers, in the form of movies, games, treats, gifts or other indulgences. Beware, though: Decreased consumer spending habits can easily harm this category of business. So it's important to study past and present industry fluctuations before making an investment decision.

Children and pet services. The interesting thing about these services is that they violate some of the factors listed above. Good times or bad, people will spend large amounts of money providing for their kids or pets. These expenditures can be items that many would consider luxuries, breaking the cycle of leaning toward low-cost providers. Child-related franchises include supplemental education opportunities, featuring core learning as well as enrichment classes for art, music and sports. In the pet sector, groomers and sellers of boutique accessories will flourish, even during economic recessions.

It's pretty easy to distinguish unsuccessful businesses and franchises from successful ones in tough times, because the answer is often intuitively obvious. You hear about and see their failures on TV and in the newspaper. Stay away from them. You may find it helpful to consider a consultant from a company like FranChoice to steer you in the right direction. These seasoned professionals in the franchise market have a good grasp on which industries and companies are faring the best. They cannot make the decisions for you, but their services are free and often save you time by helping you narrow your search.

Regardless of how you research potential franchises, it's still essential for you to complete a thorough process of due diligence. The process of buying a franchise needs to include calling existing franchisees to verify or disprove the information you're receiving before making a final decision on any one franchise opportunity. Take all the time you need to ensure that you find a franchise that thrives during tough times, and you'll be one of the few who are happy with the economy in the upcoming recovery period.

For more information on Recession Resistant Franchises visit this page: http://OpenAFranchise.com

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Franchise Financing

Over the past few months financial service companies have really been under fire. I have also been getting a lot of questions from my clients in reference to how hard it is to get financing for a franchise now that the market is all skewed around.

The main thing to keep in mind when securing financing for your Franchise is that the banks don't just look at you, your credit score is important of course and the higher the better, but they also look at the success rate of the Franchise company. The Franchise Company's success rate is one of the most important things the banks look at, they always have, this isn't something new, but it is still important.

It will be much easier to get a loan for a franchise that has a success rate of 97% and has been in business for 45 years and has 900 locations than it would be to get a loan for a franchise that has a 65% success rate and has been in business for 7 years and has 100 locations. See what I mean? Your credit doesn't play into that at all.

Where your credit will affect you the most is in the interest % numbers and in your required cash injection, this is the amount of actual cash you need to invest in your business to qualify for the loan itself.

So the bottom line is, there are still banks financing franchises, because the success rate isn't as affected as you may think, it is of course to a smaller extent than let's say the real estate industry.

For more information on Franchises visit this site: http://OpenAFranchise.com

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Start A Franchise instead of finding a Job?

Taso Louloudis knew the construction industry he and his wife Kim worked in was suffering, but neither expected they’d both lose their jobs in the same year.

Kim was laid off from her job at Engineered Homes in Orlando in May, and Taso lost his job as construction manager for Rey Homes on Nov. 7, his birthday.

“I’ve been doing construction my entire life, working my way up from subcontractor to a point where I was the boss that did hiring and firing,” Taso said.
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At age 50, with only a high school diploma, he realized his career choices were limited.

So Louloudis and his wife turned to franchising.

More and more laid off workers are considering franchising as an alternative to working for someone else, according to experts in the industry.

Some see franchising as an easy way to entrepreneurship and economic independence. But becoming a successful franchisee takes a lot of hard work and money. It could take years before you’re able to replace your income.

Because the Louloudises love pets — they have four dogs and five cats at home, many of whom are rescue animals — they embarked on finding a pet-related business.

They considered a host of options, including doggie daycare and pet sitting, but decided against starting their own company from the ground up due to the intense competition for such services in their area.

They now own a Fetch! Pet Care, a franchise that offers in-home pet sitting services.

The Louloudises bought the franchise for $13,000, plus the cost of a flight to Fetch’s headquarters in Walnut Creek, Calif., for training. They expect to bring in sales of about $50,000 by the end of this year.

For more information on Franchises visit: http://www.OpenAFranchise.com

Should you open a franchise?

If you really have the heart of an entrepreneur, franchising is probably not for you. First off, it’s not your business idea that you nurture and grow. You’ll have to follow a strict playbook of operating the franchise.

That said, franchising might be something out-of-work individuals with money to risk and a desire to run their own business may want to consider. But it requires a lot of research and intense due diligence before signing on the franchisee line.

One big challenge is getting the money to pay for the upfront fees franchise companies typically need, between $15,000 and $60,000 for most franchises.

In addition, an increasing number of individuals are tapping into their retirement funds, many of which have been battered by the sinking stock market, to foot the bill.

In some cases, people are choosing to roll over their 401(k) and IRA plans from their former employers into a new franchise and then use those funds for operations.

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