To finance a Great American Cookies franchise, applicants must first sign a franchise agreement which provides the branded product and support system. Second, applicants should scout potential locations with the franchisor's assistance and consider total costs including fees, equipment, rent, and working capital. Finally, common financing methods include using personal cash, 401k rollovers, conventional loans, leasing, lending networks, and SBA loans which offer an 80% guarantee to mitigate risk for lenders. The total cost of a franchise is typically $154,500 to $237,750.
2. Step #1 Sign the Franchise Agreements
1. A Franchise Agreement is a legal,
binding contract between a franchisor
and franchisee. It overall provides the
investor with a product, a branded
name and recognition, and a support
system.
2. A franchise agreement will be required
to get approval for funding as well as
securing a location in most cases.
3. Step #2 Finding a Location
• Start scouting out potential locations in
your development area.
• Don't be afraid to ask us for assistance.
We have a real estate team that will
assist you in identifying potential
locations.
• We look for locations with high foot
traffic such as; malls, lifestyle centers,
among other areas.
4. Step #3 Understanding Costs
• Once a location is found, it's
important to determine total costs.
• Total costs include; franchise fees,
equipment, construction, architecture
design, permitting, rent, etc.
• Working capital will be a percentage
of the total cost.
5. Cash
Using your personal
money could lead to
debt-free ownership.
We see our franchises
cost $154,500 -
$237,750. If you wish
to open multiple
stores, make sure to
leave yourself enough
working capital.
7. 401k Rollover
In some cases, you may be able to use your 401k
to finance your franchise. There are several
requirements to using your 401k. One rule is that
you may no longer work for the company where
your 401k is housed.
8. Conventional Loan
Conventional loans are common in franchising.
Lenders look for real estate collateral used to mitigate
risk. Terms are generally 5-10 years.
9. Leasing
Some banks will allow equipment leasing, but you will
still need the funding for the building cost and other
fees.
11. SBA Loans
SBA loans are the most common loan types we see.
They mitigate risk for lenders by offering a guarantee
up to 80% of the loan amount.
12. Are You Ready To Open a Great American Cookies Franchise?
Please Visit http://www.greatamericancookiesfranchise.com/
13. Disclaimer:
This information is not intended as an offer to sell, or the
solicitation of an offer to buy, a franchise. It is for
information purposes only. Currently, the following states
regulate the offer and sale of franchises: California, Hawaii,
Illinois, Indiana, Maryland, Michigan, Minnesota, New York,
North Dakota, Oregon, Rhode Island, South Dakota, Virginia,
Washington, and Wisconsin. If you are a resident of or want
to locate a franchise in one of these states, we will not offer
you a franchise unless and until we have complied with
applicable pre-sale registration and disclosure requirements
in your state. Franchise offerings are made by Franchise
Disclosure Document only.