Other Financing FAQs

Why shouldn’t personal credit be a primary form of financing a franchise?
The high interest rates alone ought to make any franchisee think twice about using personal credit for business purposes. The potential damage to a franchisee’s personal credit score—a key factor in obtaining loans—also makes this a resource best used as a backup.

Why is it so important to have everything in writing?
While the close nature of relationships with friends and family might make getting the money easy, working out the details could be difficult. Unless everyone’s expectations and roles are clearly laid out beforehand, miscommunication could lead to strained relationships. It is wise to make sure that business remains business, even when friends and family are involved. A written record will also be helpful if any legal action becomes necessary.