Funding Your Franchise Business

If there’s one thing that often holds back entrepreneurs from pursuing the business of their dreams, it’s the challenge of securing the necessary funds to move forward with a franchise purchase. It’s just a cold hard fact that buying a business opportunity takes capital. Nonetheless, figuring out how to pay for the business you want to own and operate can be an obstacle. But it doesn’t have to be that way.

At Unleashed Brands, we don’t offer an option for direct financing from corporate on behalf of our brands. But we do maintain close relationships with several trusted small business lenders and other financial organizations. The money you secure can be used to pay the initial franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll. And we can work with you every step of the way to find the most suitable form of financing that fits your needs. If you’re interested in pursuing one of the six major youth enrichment brands in our portfolio, an Unleashed Brands recruiter would be more than happy to guide you through the process and make all the necessary introductions. As mentioned above, the franchise opportunities in the Unleashed Brands family don’t offer direct funding or financing for the purchase of their concepts. But there are plenty of other avenues you can explore to find out which option is right for you. Here are a few more options for financing your way to business ownership:

Commercial Bank Loans – provided your credit is in good standing, you may want to begin your funding search with your personal bank by securing a typical term loan. You’ll get the lump sum you need to cover construction, opening, and other costs, then repay the loan with interest over a set amount of time. To go this route, you need to come prepared with a clear and concise business plan and a copy of your personal credit history, as well as any collateral you’re willing to put up to guarantee repayment.

SBA Loans - the SBA Loans are backed by the U.S. Small Business Administration but funded through a network of intermediary lending institutions. Among the most popular SBA franchise-oriented loans includes the 7(a) Loan Program, which locates suitable funders for small businesses that meet the agency’s requirements.

Specialized Lenders – there are some funding institutions that specialize in franchise funding and know our brands. It can be an advisable option to work with lenders who understand the ins and outs of the industry. Your recruiter will introduce you to one of our funding partners during Step 4 our discovery process.

401k/ROBS Funding – this option can be both a high risk and a high reward for entrepreneurs looking to fund their franchise purchase. If you happen to own a robust retirement account, the Rollovers for Business Startups (ROBS) allows you to self-fund a franchise purchase. You’ll be tapping into your retirement funds, yet the money you withdraw isn’t considered a loan and comes with no income tax penalties. But you must meet certain requirements and understand the process. To pursue this option, it’s highly advisable to consult your accountant or financial planner to assess the risk involved. Similar to specialized lenders, our recruiters can also introduce you to experts in these types of funds during Step 4 of our discovery process. 

Friends & Family – another option to explore is funding your franchise through a partnership with a friend, family member or investor group you put together. This partnership can help pull capital from several resources to fund and open your franchise.

As you can see, there are several options to fund the purchase of the business of your dreams. And Unleashed Brands offers discounts to those who qualify. Active-duty military members or those who have been honorably discharged can take advantage of a 10% discount on the initial franchise fee and development fees. And if you’re a current Unleashed Brands franchisee, we offer a 5% discount off the initial franchise fee for owners looking to expand their portfolio with another brand in our inventory.

A Little More About Us…

The Unleashed Brands platform includes Urban Air Adventure Park, Snapology, The Little Gym, XP League, Class 101, and Premier Martial Arts youth enrichment franchises. As the parent company, Unleashed Brands was founded to curate and grow the most innovative and profitable business opportunities that help kids learn, play and grow. Over the last 10 years, the team at Unleashed Brands has built a proven platform and know-how for scaling businesses that focus on serving families. All have become first-in-category brands by providing fun, engaging, and inspiring experiences that help kids with their No. 1 development goal – to become who they were destined to be.

To speak with one of our franchise experts and learn more about our children’s business opportunities, simply fill out this form and an Unleashed Brands representative will be in touch shortly.