Investment and Funding

Funding remains the biggest consideration in franchise purchase and business startups in general. Using the largest dataset of inquiries about franchises and businesses for sale, we can make observations about trends and how finances factor in the decision to buy a franchise or start a business.

Personal Savings Leads Increases in Major Shifts Expected For Franchise Funding as Loans Lag

March 29, 2023 – As March 2023 survey data arrives, aspiring franchisees now expect “personal sources” to make up the vast majority of funding for their business launches, with 47.4% including it in their top three sources. SBA loans and banks and other loan providers were second and third, included by 32.6% and 20.0% of respondents, respectively, to round out the top three choices. 

Personal Savings Outpace Loans and Other Sources Expected for Funding New Franchise Units

March 23, 2023 — Amid news of bank failures and high interest rates, business startups expect personal sources to make up the vast majority of funding for their business launches. Those planning to take advantage of Small Business Administration loans and bank loans have dropped to 30.1% and 22.8% respectively, given forty-year highs in interest rates and tightening credit conditions.

Personal Savings Tops Sources Expected for Funding Business Startups

Norfolk, Virginia – November 9, 2022 — Most aspiring franchise buyers now plan to use their own personal sources of funding for their business launches. Those planning to take advantage of Small Business Administration loans and bank loans are at 39.8% and 35.3% respectively, despite forty-year highs in interest rates seen in the last few

Funding Grows as Top Concern For Franchise Buyers As Pandemic Impact Fades

April 27, 2022 – Taking a snapshot of each March since 2020, “funding or access to credit” has increased as the biggest consideration for franchise buyers over the next six months.  Most recently in March 2022, 76.6% of respondents indicated that this was their biggest concern. From March 2020 when the total impact of the

SBA Loans and Personal Savings Are Top Two Sources Expected for Funding Business Startups

March 16, 2022 — Most aspiring franchise buyers plan to use Small Business Administration loans and personal savings to start their businesses, at 48.9% and 45% respectively, according to the FranchiseInsights.com Small Business Startup Sentiment survey. Loans from banks or other lending institutions were identified as the third most common source at 39.8%. The percentages

Funding Remains Top Concern For Business Buyers As Pandemic Restrictions Ease

March. 24, 2021 – As the vaccinated share of the population increases, and states ease restrictions on social distancing, respondents to a recent survey of aspiring small business owners chose “funding or access to credit” as the biggest barrier to buying a franchise over the next six months. The survey of future business owners was

Access to Funding Identified as Greatest Hurdle to Franchise Ownership

March 12, 2020 – Respondents to a February 2020 of aspiring small business owners cited “funding or access to credit” as the biggest barrier to buying a franchise. This level is just below the 68.5% seen in the month-earlier survey. Franchise buyers recognize that franchise fees account for  a relatively small portion of the capital

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