Welcome to this insightful blog where we delve into the essential topic of franchise funding. We have the privilege of speaking with Jen Wherrell from Benetrends, who shares her expertise on navigating the complex world of franchise finance. From the importance of early funding consultation to understanding various funding options and preparing for SBA loans, Jen provides invaluable advice to help you make informed decisions. Whether you're just starting your franchise journey or looking to optimize your financial strategy, this discussion is packed with practical tips to guide you toward achieving business success and financial freedom.

The Importance of Early Funding Consultation

One of the most common questions we receive is, "When should you look into funding if you're exploring a franchise?" According to Jen, many people make the mistake of looking into funding too late. Benetrends offers complimentary pre-qualification services, which provide valuable insights on what you can afford and guide your franchise search effectively. Think of it like a prequalification for a mortgage; knowing your budget early prevents you from setting unrealistic expectations.

Understanding Your Funding Options

Just like choosing the best franchise, the best funding option depends on individual circumstances. You might have various assets like a retirement plan, a traditional IRA, or a 401k from a previous employer. Jen emphasizes that it's essential to explore all these options before making a decision. Benetrends also offers various funding routes such as HELOCs, SBA loans, and the Rollover for Business Startups (ROBS) plan. The goal is to give you a comprehensive view of your options so you can choose what you're most comfortable with.

Navigating SBA Loans and Credit Issues

When considering an SBA loan, it's essential to be prepared. Benetrends assists in walking you through the steps needed to qualify. They even help with credit score improvements if necessary. For example, if you're close to qualifying but need a few extra points, they provide tips and tricks to bump up your score. As Jen explains, funding and finance can be intimidating, but having a consultant like her on your side makes the process much less stressful.

Realistic Expectations in Franchise Funding

It's crucial to have realistic expectations about what you can afford. For instance, if you're looking at a franchise investment of $200,000, you would need a 20% equity injection, which equates to $40,000. Additionally, the SBA typically looks for the same amount in post-closing liquidity. Jen suggests putting all your financials together, including retirement account statements, mortgage balances, and brokerage accounts, to give a full picture during your consultation.

The Role of Benetrends in Your Franchise Journey

Benetrends is not just another funding company; they're a full-scale retirement planning company. They bring years of expertise to the table, making them a one-stop-shop for all your financial needs. Plus, they offer to consult with your CPA to explain the nuances of different funding options, ensuring that you and your financial advisor are both on board.

Final Thoughts

Franchise funding is a specialized field, requiring in-depth consultation and planning. Don't make the mistake of going at it alone or waiting too late to explore your options. Reach out to experts like Jen Wherrell at Benetrends for a comprehensive analysis of your financial situation and available funding options. Remember, early preparation and understanding your options are key to a successful transition from corporate life to franchise ownership.

If you have any questions about franchise funding or want to discuss specific strategies, feel free to reach out. Jen Wherrell is available at jwerrell@benetrends.com. For future episodes, please leave your questions and comments. We read them all and appreciate your feedback.

Let's continue this journey to financial and time freedom together. See you in the next episode!