Frequently Asked Questions

FranFund was a pioneer in the franchise industry in putting together a portfolio of funding solutions to offer our clients, rather than a "one-size-fits-all" approach. FranFund has an experienced staff of financial consultants that all have franchise industry experience as well as a complete understanding of both the funding solutions we offer, as well as other capitalization products on the market.

Simply complete the short questionnaire found on our website under GET FUNDED NOW. Within one business day, you will be contacted by a FranFund financial consultant. We will review all of the various capitalization vehicles, and determine the one (or ones) that are appropriate for you. After having a discussion with your FranFund financial consultant, you can proceed with confidence in identifying the new business or franchise you wish to pursue. With FranFund, you have a financing partner that is with you throughout the life of your business.

Debt funding means that the new business or franchise owner borrows money to capitalize their new enterprise. Debt can consist of an SBA or Conventional loan, a Line of Credit, a Home Equity loan or even an equipment lease. How do you know which debt strategy is the best for you? The FranFund team will work with you to identify the most appropriate funding solution for you, and then work as your advocate in the process of securing these funds.

Equity funding is a cash injection into a new business enterprise by the owner(s). Every business purchase requires some type of cash injection from the owner. There is no such thing as a "no money down" deal in franchising. In fact, most franchisors require a minimum investment from a new franchisee. Many people have the majority of their net worth tied up in their retirement accounts and their homes, which can present a problem when trying to capitalize a business. If during your consultation with a FranFund financial consultant it is determined that utilizing retirement funds is a viable alternative for you, FranFund will assist you through our FranPlan™ product.

After determining your capitalization strategy, the actual funding time will depend on the source of the funds as well as the scope of the project. As an example, utilizing the FranPlan could result in funding in less than 15 business days, while a SBA or conventional loan may take up to several months. Your FranFund financial consultant can assist with determining this time line.

Simply speaking, when you decide to utilize your retirement funds to invest in a business, you are taking charge of the investments your retirement plan makes. By rolling your existing IRA or 401(k) funds into a FranPlan, you will own a portion of your new business or franchise inside your retirement plan. There are two bodies of law that govern the FranPlan structure. One is the Employee Retirement Income Security Act of 1974 (ERISA), and the second is Internal Revenue Code of 1986 (IRC). Basically, ERISA governs who is eligible and what can or cannot be done in a qualified plan, and the IRC speaks to what is deductible going into the plan, and how money is taxed when it is taken out of the plan. In addition to providing a retirement plan for yourself and your employees, one of the best features of this process is that you can access your retirement funds tax and penalty free. Your FranFund financial consultant will show you how to finance your franchise or small business using this method.

FranFund offers our initial consulting services at no charge. Once a capitalization strategy has been determined, and you engage us as your financing partner, FranFund charges a fee on a per product basis.

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