The list is out! Entrepreneur named its top franchises for 2013 in its annual list known as the Franchise 500. Entrepreneur surveys franchise owners and analyzes their responses about financial strength and stability, growth rate, and size of the system, number of years a company has been in business, the length of time it has been franchising, startup costs, litigation, percentage of terminations and whether the company provides financing. The list also provides specific information such as the top 10 home-based and low-cost franchises. The Franchise 500 shows that many of the most competitive companies–especially during tough economic times–are those that go after a specific demographic such as: kids, Latinos, Seniors, and Veterans. By looking closely at these lists you can identify the best franchise to open within a specific market.
The Franchise 500 aims to arm you with information to help you minimize your risk by ranking franchises that have shown the greatest overall profit. However, before you can even dream of opening a franchise, you’ll need to make the right decision about how to finance your franchise. What if you lacked enough working capital needed to start your franchise? Your first inclination might be to secure a traditional bank loan, but interest rates mean that you could be working with little to no capital for longer than you might like. Moreover, if your credit is less than ideal you might not be approved for a bank loan in the first place. And, while friends and family might be willing to invest in your franchise, the thought of having to pay back friends and family, might over time, inflict more tension into your personal life than it’s worth!
A great alternative financing option, known as the Rollover As Business Startup (ROBS) or 401k small business financing ), allows you to tap your retirement funds to start or buy your franchise without interest or penalties, with no required loan payments or need to pledge collateral, and without having to find other investors or “backers”. To ensure the success of your franchise you’ll need to make good decisions. A good way to start is to ensure that you start with less debt! Consider the ROBS financing transaction; it just might make the Franchise 500 more than just a list but a reality!
To learn more about this strategy please visit our ROBS page or call 1-800-489-7571.