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What You Need to Know About Financing a Franchise.

How to Finance a Franchise

Accessing capital for a new business might be unfamiliar territory in the start-up process, so it’s not surprising when new franchisees have questions. Outside of securing home mortgages, many people have not had experience with commercial lending, much less government-backed loans from the Small Business Administration (SBA). This is one reason having the support of an experienced franchisor like The Goddard School Franchise can help make obtaining financing easier than navigating the finance process alone.

Accessing capital for a new business might be unfamiliar territory in the start-up process, so it’s not surprising when new franchisees have questions. Outside of securing home mortgages, many people have not had experience with commercial lending, much less government-backed loans from the Small Business Administration (SBA). This is one reason having the support of an experienced franchisor like The Goddard School Franchise can help make obtaining financing easier than navigating the finance process alone.

A smiling franchisee who is happy about her decision to invest in a Goddard School franchise.

The Right Support

Without the right support, knowledge and guidance, the commercial lending process can be tedious. The Goddard School Franchise conducts an internal financial pre-approval screening so prospective franchisees are not awarded a license unless we feel confident that they will be financed. After an approved prospect enters into an agreement with The Goddard School Franchise, he or she works with the Real Estate Department to decide whether to lease or purchase a building. A member of the Franchise Finance team is available to review the finance options for both. After the site is secured, our team guides the franchisee through every step of the finance process. We explain commercial lending practices, offer resources and contacts, answer questions, provide insight and feedback and serve as a liaison between our franchisee and the lenders.

The Goddard School Franchise’s Franchise Finance Department addresses questions, provides guidance and communicates directly with the lenders to help avoid surprises along the way. We want our franchisees to have the same confidence in their loan as they do in The Goddard School brand.

Our Franchise Finance team creates an allocation of funds for each project; provides necessary templates, such as business plans and projections; directs franchisees to financing sources; reviews loan proposals and commitment letters to ensure the loan is structured properly, covers all project costs and offers competitive terms; and assists with the loan closing. This support can definitely help the finance process go more smoothly.

A smiling franchisee who is happy about her decision to invest in a Goddard School franchise.

The Right Resources

Due to the record demand for childcare and The Goddard School Franchise’s success, reputation and unrivaled support, The Goddard School system is an approved franchise concept for many national and local lenders. We also meet the criteria for SBA eligibility, and our Franchise Finance team has great relationships with many national SBA lenders. We have one main contact with each lender who is already familiar with our model and lending needs. Most of these lenders are part of the SBA’s Preferred Lender Program, which allows them to approve SBA loans in-house. These valuable relationships result in competitive terms and a streamlined process for our franchisees.

The Goddard School Franchise makes the financing process easy for our franchisees by providing great resources, a strong business model, superior support and knowledgeable employees. We pride ourselves on finding the right lender and terms for each franchisee, and we look forward to working with prospects who are considering joining The Goddard School system!