Is there a thrift store franchise opportunity in Lakewood that seems to meet your requirements perfectly? Are you wondering what it would cost to grab hold of this opportunity? Well, depending on which company’s’ franchise you are buying, the cost could range from average to very high. Explained below are some of the reasons why you may have to shell out a considerable amount of money for this opportunity.
- You Are Buying A Brand Name
Yeah, you know that’s what you are paying for, but do you really understand the extent of the deal? You don’t just use their name to sell your products, you get to rely on the franchise’s network which is usually well established. You are also privy to their business plans and model which has already been tested and trusted for success. So yes, you must be ready to put up a lot of cash for a lot of franchise opportunities.
- Analysis of the Cost
Another reason the cost of buying a franchise is on the high side is the various expenses that the franchisor would have to cover on the franchisee’s behalf. Some of these costs include;
- Insurance fees
- Marketing and advertising fees
- Professional fees such as legal, licensing, and accounting fees.
Certain thrift store franchisors undertake other expenses like providing the first inventory. They also cover expenses that entail leasehold improvement and construction and the provision of general office supplies and equipment.
Sourcing for Funds
Given how expensive it is to buy a franchise, you might need funding to grab hold of a thrift store franchise opportunity in Lakewood. Here are some tips on doing so;
- Make sure the franchisor you are intending to buy a franchise from has good legal standings and good brand recognition. Financial institutions who see this know that your business has higher chances of success and they’ll be more inclined to grant you a loan.
- You must also have all the necessary documents that the financial institution might ask of you. This not only helps speed up the loaning process, but it also reassures the financial institution that they are about to get into business with a potentially responsible business owner.
These documents will include your address, your personal financial statements for at least a year, and your bank and credit statements. A tax report for at least 3 years is also important as well as details of your educational and work history. All these should be accompanied by a resume that covers your basic personal information.
- It helps that you have a high credit score and if possible, collateral that you can use to stand for the loan.
- When submitting a financial report, do well to state other sources of income asides your expected income that you can use to repay the loan.
Take advantage of the thrift store franchise opportunity in Lakewood and watch out as the money keeps rolling in.