: Buying an established franchise from an owner looking to exit can be more flexible than starting fresh. You might secure an SBA 7(a) loan for 90% of the price and negotiate for the seller to finance the remaining 10%.
If you have no liquid cash but do have other assets or networks, consider these alternative routes:
Lowering the total cost makes "no money" strategies more viable. Focus on industries that do not require physical storefronts or expensive inventory: Crowdfunding how to buy franchise with no money
: While SBA loans typically require 10% down, if you have a guarantor or co-signer with strong credit and assets, you can often secure the full amount without using your own cash. Target Low-Overhead Franchise Models
: You can use funds from an eligible 401(k) or IRA to finance your franchise without facing early withdrawal penalties or tax hits. : Buying an established franchise from an owner
: You can act as the operating partner while a silent investor provides the necessary capital. In these deals, the investor typically funds 100% of the startup costs (franchise fees, equipment, build-out) in exchange for majority ownership.
: Some brands directly finance the initial franchise fee or equipment costs for highly qualified candidates. For example, 7-Eleven has offered deferred franchise fee payment plans. Focus on industries that do not require physical
: If you own a home, you can use a Home Equity Line of Credit (HELOC) to cover the down payment, though this carries the risk of using your residence as collateral.