From: http://www.franchisebrief.com/blog/2008/12/29/do-you-know-how-franchise-opportunities-operate/
"You’ve always loved Subway, so when a franchise opportunity became available in your area, you jumped on it. To qualify, you needed $250,000 in the bank and another million dollars to cover the building’s lease, equipment and start-up costs. You already had 40% of that cash lying around and the other 60% was secured through a small business loan, which was pretty easy to get. The franchising fee was around $45,000, which went directly to Subway. This is the only real upfront fee."
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Even if you DONT have the million in the bank a company with good credit can finance the equipment and depress the need to rely on capital reserves in the area of "start up costs". Any successful business owner (especially in restaurant ventures) would agree that the more cash a business has in the bank, the better, and financing an equipment purchase using a capital-lease gives a franchisee more flexibility compared to buying the equipment outright.
I dont mean to pick in a good natured article on franchising, I just needed to add in an opportunity that the author may have missed.
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