Smart Funding Strategies: Key Insights from Shay Kleinschmidt

If you’re thinking about buying a franchise, you probably already know that securing the right funding can be one of the biggest hurdles. Luckily, in a recent episode of the Franchise Hot Seat Podcast, Shay Kleinschmidt, VP of Lending at FranFund, sat down with Dr. John P. Hayes, Chair for Franchise Leadership at Palm Beach Atlantic University’s Titus Center for Franchising, to share valuable tips and insider knowledge on navigating the often-confusing world of franchise funding.

Here’s a quick rundown of what you’ll learn from this episode:

Start Early and Get Personal with Your Funding Strategy
Shay emphasizes the importance of thinking about funding early in the process. There’s no one-size-fits-all approach; each franchisee’s situation is unique, so your funding plan should be tailored specifically to your needs.

Technology is Changing the Lending Game
FranFund is using automations in a powerful way, matching clients with lenders who best fit their specific profiles. This automated lender match system speeds up the process and makes it smarter for everyone involved.

Know Your Funding Options
There’s more than one way to fund a franchise. From SBA loans and Rollover as Business Start-up (ROBS) to traditional non-SBA loans, Shay breaks down what’s available and which might be the best fit depending on your goals.

What’s the Timeline for SBA Loans?
One common question is, “How long does it take to get an SBA loan approved?” Shay explains it can range anywhere from 30 to 120 days, depending on the type of business, so planning ahead is key.

Don’t Skip Reading the Franchise Disclosure Document (FDD)
Before you sign anything, understanding the Franchise Disclosure Document is critical. Shay highlights reviewing the entire FDD, franchise agreement and having validation calls with existing franchisees to have a real sense of what to expect.

How FranFund Supports You
From your first funding consultation to prequalification, matching you with the right lender and guiding you every step of the process, FranFund plays a key role in making franchise funding smoother and less overwhelming.

If you’re ready to dive deeper into smart funding strategies and get insider tips that can set you up for success, this episode is worth your time. Shay Kleinschmidt’s insights make it clear that with the right guidance and strategy, franchise funding doesn’t have to be a roadblock; it can be your stepping stone.

Watch the full podcast here: https://www.youtube.com/watch?v=bUDGlB9O25I