Anybody experienced with opening a franchise business

[Arkitech]

I live in Chicago and I know of an incredible business that would work extremely well in either downtown or the north side of Chicago. My only problem is that I have no money so I would probably need to get a grant or loan from the goverment.


Does anyone know how the process works for getting started on things like that?

 

[rahvin]

<<so I would probably need to get a grant or loan from the goverment.>>

Reality check. The government doens't loan money to anyone but Chrystler. You would need a commercial loan. Most francishes (national chains) will cost 250k to 500k in addition to 2-5% of all sales. You will be required to buy all product from them at fixed prices and the store and setup will need to be decorated per franchise standards. In addtion you will need somewhere for your business to exist. Rent will be pricey and will require a long term lease agreement, in addition you will have tenet improvements on the property. You should count on probably around 50-100k to setup and a recuring rent charge of upper 4 figures a month.

To get a loan you would need a fabulous business plan that is well researched and well written, you would also need good collateral (personal property) and solid refferences and demonstratable experience in the franchise business you wish to start.

 

[Arkitech]

what about grants? does'nt the goverment issue grants to small businessmen or minorites?

 

[xraymongral]

Check out small business loans, I think they are handled by the SBA, not sure. Any ways, just do a search for &quot;small business loans&quot;. Other that that, you might want to research venture capitol, see if you can find a silent partner.