June 2019 | Page 3 of 4 | Franchise Dictionary Magazine

5 06, 2019

N-Hance Wood Refinishing Franchise Seeks Master Franchise Owners In Ireland, England

Tatyana Stemkovski2019-06-05T10:02:40-04:00June 5th, 2019|Tags: hardwood floor refinishing industry, home remodeling, innovative floor sanding service, kitchen cabinet refinishing, N-Hance Wood Refinishing|

International company continues to make inroads in European markets

NASHVILLE, Tenn. — N-Hance, a rapidly growing wood-refinishing and refreshing franchise opportunity, is seeking Master Franchise Owners in Ireland and England as it continues an aggressive international expansion program.

N-Hance is a unique wood-refinishing business that provides affordable wood refreshing, including the ability to change wood colors, flooring, cabinetry, siding, furniture and trim refinishing, to consumers at a fraction of the cost of new cabinets or floors, most jobs completed in 1-2 days. N-Hance launched in 2006, began its global expansion in 2018 and already has more than 500 franchises around the world. As a Master Franchise Owner, an entrepreneur will own the rights to an entire region or country and have the right to develop as many franchise locations as they can in that area.

N-Hance’s rapid processes, such as its proprietary Lightspeed^®instant-cure wood refinishing process, mean that high-traffic areas aren’t out of commission for a week. N-Hance makes the wood-renewal process fast, efficient and affordable — giving the business appeal to residential and commercial clients around the globe. As a Master Franchise Owner, an entrepreneur will own the rights to an entire region or country and have the right to develop as many franchise locations as they can in that area.

“N-Hance offers a business model designed to perform well in any market, which has led to our rapid international expansion,” said Manuszak. “N-Hance Master Franchise Owners and their teams provide a full roster of wood refreshing and refinishing services, from floor and other timber renewal to complete cabinet makeovers through color renewal or replacement, that are in high demand in their countries,” Manuszak added. “N-Hance’s fast, durable services, market-competitive pricing and industry-leading technology, such as Lightspeed, are creating substantial opportunities for N-Hance Master Franchise Owners in the global marketplace.”

“N-Hance has already established footholds in many countries around the world, where forward-thinking entrepreneurs have begun to realize their goals of financial independence while also creating high-quality jobs and business opportunities for their communities,” Manuszak said. “If interested, just reach out and we will move swiftly to answer your queries and help you realize the dream of owning your own Master Franchise.”

To learn more about N-Hance and its international franchise opportunities, visit nhanceinternational.com.

ABOUT N-HANCE WOOD REFINISHING™

Founded in 2001, N-Hance Wood Refinishing is based in Logan, Utah and is a trusted partner of the Home Depot, with a presence in more than 1,200 locations. N-Hance Wood Refinishing has more than 500 franchises across the United States, Canada, Australia and New Zealand and is backed by Harris Research, Inc., the same company that grew Chem-Dry into the world’s largest carpet cleaning company.

4 06, 2019

Jabz Boxing Signs Agreement to Open Second Philadelphia Studio

Tatyana Stemkovski2019-06-04T15:04:43-04:00June 4th, 2019|Tags: fitness franchise, full-body circuit style workout, Jabz Boxing, Women’s Fitness Studio|

New Women’s Fitness Studio Coming to Havertown

HAVERTOWN, Pa. – Jabz Boxing fitness for women franchise announced today that it has inked an agreement for a new location in Havertown, Pennsylvania. Jabz is known for its full-body, circuit-style workout that utilizes boxing inspired exercises designed specifically for women.

The Havertown signed agreement comes upon the heels of a recent opening in Ridley Park, as the fitness concept continues to expand its presence across the Philly metro area. The new location, slated to open later this year, will offer different daily workouts designed for women of all fitness levels.

“I’ve been watching Jabz grow for years, so the brand was already on my radar when the Ridley Park studio opened. After trying my first class there, the atmosphere and energy of the experience captured my interest in opening my own studio,” said Shannon Crowley, owner of the new Havertown studio. “As the buzz around the studio continued to grow, so did its popularity among locals and I realized this was a business opportunity that I was destined to pursue. I can’t wait to share the unique fitness experience and help build an empowering environment for local women. So far, the news about Jabz coming to Havertown has been well-received and I’ve already had a chance to connect with several women who are eager to join the future Jabz community in Havertown.”

Committed to cultivating a fitness community of empowerment for women, Jabz Boxing offers intense, boxing-inspired full-body workouts to help clients achieve their fitness goals. The results-driven workouts and a strong sense of community resonate with women of all ages and fitness levels. Jabz classes are kept small to encourage an individual and positive workout experience. All classes are led by dedicated, certified instructors who offer one-on-one support for all members.

“We are excited to be expanding into Havertownand Shannon is the perfect person to lead the charge,” said Kimberlee White, CEO and co-founder of Jabz Boxing. “We have no doubt in herability to support and inspire members and spread the Jabz message with Havertown women.”

Since beginning franchising in 2013, Jabz Boxing grew to over 20 Arizona locations before deciding to expand nationally in 2019. Since the start of the year they have opened locations in Voorhees, New Jersey and Ridley Park, Pennsylvania. Jabz Boxing plans to increase its nationwide footprint by entering key markets such as Denver, Dallas/Fort Worth and Las Vegas, where it will provide women with an empowering community and energetic workout experience.

As the fitness studio concept continues to rapidly expand into key markets across the United States, Jabz Boxing is actively seeking qualified franchisees who are passionate about fitness and entrepreneurship to join its system and bring the Jabz culture of female empowerment to their local communities.

For more information on Jabz Boxing in Havertown, visit https://www.jabzboxing.com. To learn more about Jabz Boxing franchise opportunities, visit Jabz Boxing franchising.

About Jabz Boxing

Jabz Boxing, a full-body circuit style workout utilizing boxing inspired exercises designed specifically for all women. Our focus is on developing fitness rather than fighters. Our workouts combine cardio, strength training, core work and plyometrics to help give clients a full body workout to maximize results and meet all of our client’s fitness needs.

Jabz workouts change daily to help keep our client’s bodies constantly challenged and our Jabz certified trainers are prepared to help guide and motivate women of all different sizes, ages and body types though an energetic and intimate workout experience.

Since it began franchising in 2013, Jabz Boxing has now grown to 20 franchise locations in Arizona and New Jersey.

To learn more about Jabz Boxing, visit https://www.jabzboxing.com/. To learn about franchising opportunities with Jabz Boxing, visit Jabz Boxing franchising.

About ZGrowth Partners LLC

Partnering with Great Brands to Build World Class Franchise Systems. ZGrowth Partners is a consulting firm specializing in managing the franchise sales, operations and brand development of emerging franchise concepts. Through its private equity fund, ZGrowth Capital, our strength is focusing on investing in and growing differentiated franchise concepts with attractive unit-level economics. To learn more about ZGrowth, visit zgrowth.com.

4 06, 2019

Assisted Living Locators Named a 2019 Top Low-Cost Franchise by Franchise Business Review

Tatyana Stemkovski2019-06-04T11:48:06-04:00June 4th, 2019|Tags: assisted living communities, Assisted Living Locators, franchisee sales training, in-home care, independent retirement options, memory care, senior care placement|

Independent Research Data Shows Franchisees Are Highly Satisfied with Their Investment in Assisted Living Locators

PHOENIX — Assisted Living Locators, a leading senior placement franchisor, was identified by independent franchisee satisfaction research firm, Franchise Business Review, as being only a few of the franchises to qualify for its 2019 Top Low-Cost Franchises list. Brands on the list had to have high franchisee satisfaction and an investment of under $100,000 at the time their franchisees participated in Franchise Business Review’s survey.

Franchise Business Review (FBR) provides the only rankings of franchises based solely on actual franchisee satisfaction and performance. FBR publishes its rankings of top franchises in its annual “Guide to Today’s Top Franchises,” as well as in quarterly reports throughout the year that rank the top franchises in specific sectors.

Thousands of franchisees representing over 150 low-cost brands participated in Franchise Business Review’s franchisee satisfaction survey between September 2017 and February 2019.

Assisted Living Locators franchisees were surveyed on 33 benchmark questions about their experience and satisfaction regarding critical areas of their franchise systems, including training & support, operations, franchisor/franchisee relations, and financial opportunity.

“A common myth around buying a franchise is that it’s too expensive. What most people don’t realize is that there are many low-cost opportunities available that can provide the satisfaction of business ownership, without requiring a huge financial investment,” says Michelle Rowan, president & COO of Franchise Business Review. “The low-cost franchises that made this year’s list have all been rated highly by their franchisees and are excellent options for entrepreneurs considering franchise ownership.”

“Assisted Living Locators is an affordable franchise opportunity that provides comprehensive training and technology processes to help franchisees be successful,” said Angela Olea, RN, CEO of Assisted Living Locators. “It’s an honor to be named to this elite list as a result of franchisee feedback.”

About Assisted Living Locators

Assisted Living Locators offers a no cost placement service for seniors and their families providing expert advice on short-term and long-term care options including in-home care, assisted living, memory care and retirement apartments.

As the first senior placement franchise business in the U.S., the company has pioneered its way to a national presence with 110 franchisees in 34 states and the District of Columbia.

To learn more about Assisted Living Locators, call 800-267-7816 or visit: www.assistedlivinglocatorsfranchise.com.

4 06, 2019

Coffee Beanery Grand Opening and Ribbon Cutting

Tatyana Stemkovski2019-06-04T11:39:29-04:00June 4th, 2019|Tags: Coffee Beanery, decadent specialty drinks, specialty coffee roaster|

SHELBY TOWNSHIP, Mich. — Coffee Beanery, the specialty coffee roaster based in Flushing, MI, is excited to announce the opening of its location on 52857 Schoenherr in Shelby Township, MI.

The café offers decadent specialty drinks such as their signature Café Carmel® as well as other delicious choices including Black and White Frappalatte® and Iced Fudge Ripple®. Other offerings include a vast variety of estate and SWP decaf coffees and over 40 flavored coffees, such as Caramel Pecan Pie and their famous house coffee, Beanery Blend®. A lineup of original Panini sandwiches includes tasty choices like Grown up Grilled Cheese and Turkey Cucumber Club.

To celebrate the opening of this location, a three-day Grand Opening Celebration has been planned. On Thursday, June 6th, the first 100 guests will receive a Right Roast® coffee sampler. Free tall coffee and hand-crafted panini tastings will occur all day. On June 7^th, giveaways, games, and $1.99 tall specialty drinks will take place all day with a ribbon cutting beginning at noon. On Saturday the 8^th, enter to win a Coffee Beanery gift basket and win great prizes. This event is free and open to the public.

WHERE: Coffee Beanery – 52857 Schoenherr, Shelby Township MI
WHEN: Friday, June 7 @ 12 p.m.; ribbon-cutting ceremony

About Coffee Beanery:

Coffee Beanery opened its first stores in the United States in 1976, before the American public knew the term “specialty coffee.” In the 40 years that have followed, Coffee Beanery continues to build its brand and franchise organization on the principles of time-tested and honored traditions and values. Exceptional coffee, a warm relaxing environment, and a corporate culture that embraces its franchisees with every opportunity to succeed exemplify these values. Today, Coffee Beanery has nearly 75 locations throughout the world with locations overseas and is recognized as an industry leader for its unique family business approach, corporate culture and commitment to quality.

4 06, 2019

Leading Coworking Franchise Inks Master Franchise Agreement in UK and Ireland

Tatyana Stemkovski2019-06-04T11:32:39-04:00June 4th, 2019|Tags: blend of boutique hotel and modern office styles, shared workspace and community, tech-driven flexible workspaces, United Franchise Group, Venture X|

Venture X to Bring Locations to UK and Ireland; Continues to Meet International Growth Goals

WEST PALM BEACH, Fla. — Venture X^®, a global shared workspace franchise, announced today the company has signed a Master License Partnership to bring the brand to the United Kingdom and Ireland. This announcement comes on the heels of Venture X’s successful expansion in the United States, as well as Canada, Australia and 22 additional countries. This expansion will be led by partners Andrew Ross and Tom Foster.

“We are extremely excited to be working with Andrew and Tom to bring Venture X to the UK and Ireland,” said Venture X President, Jason Anderson. “As we seek new international markets for expansion, these markets were a perfect choice, as they are already familiar with the benefits of flexible workspaces, and eager for more options. We know Andrew and Tom’s experience will ensure the success of their development, and we’re excited to announce the specific details of these locations soon.”

Foster and Ross have over 25 years real estate and hospitality experience between them. Together they have built successful hotel, commercial development, student housing and healthcare real estate platforms and are now focused on bringing Venture X to the major business hubs of the UK and Ireland, continuing the impressive trajectory of the brand’s growth globally.

“As Andrew and I began to explore various business opportunities, we were continually being drawn in by flexible workspaces and the value they bring to the modern professional,” said Foster. “We chose Venture X because of the inspiring environment and premium amenities it provides for clients and feel confident the UK and Ireland will respond well to Venture X’s style,” added Ross.

Venture X’s membership-based model has seen rapid growth since its start in 2012, moving even faster in recent years through the power of franchising. With more than 80 signed locations in 25 countries, and a goal to open 21 locations by the end of Q2 2019 alone, Venture X is primed to continue rapid expansion in both the United States and abroad. Backed by the powerhouse United Franchise Group, a group of affiliated, award winning franchise companies and brands, Venture X has the support needed to grow exponentially in the coming years.

Many Venture X franchisees have backgrounds in real estate, finance, hotels or have experience as landlords. Currently the franchisor is seeking single-unit operators, with multi-unit development offered in the future. The brand’s initial franchise fee is $79,500 with a total investment cost ranging from $1.1M–$3.4M.

About Venture X

Venture X is a membership-based, shared workspace and community that is a blend of boutique hotel and modern office styles with a high level of design that feels professional and welcoming. We are designing beautiful spaces and developing an environment and community that people love coming to work to every day. Venture X is a member of United Franchise Group, a group of affiliated companies and brands, and has been recognized by Inc. as one of the best co-working spaces in the United States. The brand anticipates having 100 locations sold by the end of 2019. For more information about locations visit www.VentureX.com and for information about franchise opportunities visit www.venturexfranchise.com.

About UFG

Led by Founder and CEO Ray Titus, United Franchise Group is home to a variety of brands including Signarama, Fully Promoted, Experimax, Jon Smith Subs, SuperGreen Solutions, Transworld Business Advisors, Accurate Franchising, Venture X, and the Great Greek Mediterranean Grill. With over three decades in the franchising industry and more than 1,600 franchisees throughout the world, United Franchise Group offers unprecedented leadership and solid business opportunities for entrepreneurs.

This advertisement is not an offer to sell a franchise. Any offer to sell this franchise will be made by a Franchise Disclosure Document and only the following registration by Venture X Franchising, LLC in any state requiring registration prior to sale.

In New York: This advertisement is not an offering. An offering can only be made by prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law.

In California: These franchises have been registered under franchise investment law of the State of California. Such registration does not constitute approval, recommendation or endorsement by the Commissioner of Business Oversight nor a finding by the Commissioner that the information provided herein is true, complete and not misleading.

3 06, 2019

Staffing Industry Leader NEXTAFF Opens First Location in Oregon

Tatyana Stemkovski2019-06-03T15:17:49-04:00June 3rd, 2019|Tags: administrative and healthcare staffing agency, identifying quality talent for businesses, NEXTAFF, recuiting franchise, staffing franchise, staffing solutions to businesses|

Military veteran plans to utilize operations and IT experience as he brings national recruiting firm into Pacific Northwest market

BEAVERTON, Ore. — NEXTAFF, an industry leader in identifying quality talent for businesses, opened a staffing agency location today in Beaverton, Oregon, which is the first location in the state.

Owned and operated by Alvin Montances, the office will serve Beaverton, Portland and the surrounding Washington County area and offer staffing solutions to businesses in the information technology industry. Montances is a U.S. military veteran with 20 years of IT experience, including time spent as a senior network engineer providing engineering, sustainment and integration solutions to various Department of Defense entities.

“I’ve been on both sides of an interview, and I understand how important it is to identify the right talent for a position,” Montances said. “The beauty of the NEXTAFF system is that it offers a unique advantage to both the candidate and the company seeking to fill a position because our methodology ensures the best possible fit for all involved. Staffing firms are a dime a dozen, but NEXTAFF has a proven track record of finding the best talent possible.”

NEXTAFF offers a proprietary recruiting method called X-FACTOR™, which combines hiring methodologies that are statistically proven to outperform what typical staffing agency competitors and HR departments traditionally do. This methodology, combined with a robust back-office support structure, allows a staffing franchise office many distinct advantages over someone looking to start their own staffing agency.

“Alvin has a long history with the IT field, which gives him a deeper appreciation and understanding of what’s happening in the industry,” said Cary Daniel, co-founder and director at NEXTAFF. “His experience, combined with the NEXTAFF methodology, offers a powerful combination for meeting the staffing needs of the Beaverton area.”

The office will be located at 4800 SW Griffith Drive, Suite 102, in Beaverton. More information can be found at https://www.nextaff.com/locations/beaverton-or/.

“Over the last two decades, I’ve had some great experiences in IT,” Montances said. “I’ve also had some experiences that were absolute nightmares. All of these moments made me who I am today, though, and I’m going to use them to help each and every person that walks in the door. Working with NEXTAFF is giving me the opportunity to change lives, and I can’t wait to get started.”

About NEXTAFF

NEXTAFF helps companies identify, evaluate and acquire quality talent through our proprietary X-FACTOR™ model. Our comprehensive approach is designed to outperform a typical temp agency supplier model by up to 100 percent. Each temporary staffing office is locally owned and operated, which allows our clients to work directly with owners in hiring quality talent. As the franchise division of Malone Workforce Solutions, NEXTAFF offers a variety of custom solutions to industrial, administrative, professional, information technology and healthcare industries. NEXTAFF’s goal is to enable clients to concentrate on their core business activities while we identify, evaluate and acquire quality talent.

For more information about NEXTAFF’s services, visit https://www.nextaff.com/. Those interested in franchise opportunities can visit https://www.nextaff-franchise.com/.

3 06, 2019

Keep Cool This Summer with Blo Blow Dry Bar’s New Summer Hair Menu

Tatyana Stemkovski2019-06-03T15:00:16-04:00June 3rd, 2019|Tags: beauty services, Blo Blow Dry Bar, exceptional customer experiences, North America's original blow dry bar, salon industry, world's largest blow dry bar franchise|

Original blow dry bar debuts three new hair styles for the season

TORONTO — Blo Blow Dry Bar, the original blow dry bar and the world’s largest blow dry bar franchise, has launched its Summer Hair Menu, inclusive of three new styles inspired by the season’s hottest hair trends. These offerings will be an extension of Blo’s signature hair menu and will be available at all Blo locations today through August 31.

Designed to keep the hair pulled back, these stylish up-dos will help women stay cool on hot summer days while still looking fabulous. From beachside cocktail parties to backyard barbecues, Blo’s Summer Hair Menu provides a variety of options for any summer soiree.

Glass Act – This sleek style is the perfect ‘do for those seeking a silky “glass hair” look. With the hair pulled back away from the face and styled with the Color Wow Dream Coat treatment to slay humidity, the Glass Act will leave guests feeling fabulous and polished on even the hottest summer days.
Double Take – Sun’s out, buns out! These effortlessly stylish summer buns make for the perfect playful summer do’. With two twisted buns stacked together, this looks will have guests turning heads all summer long.
Dreamweaver – This high volume, low mane-tenance braided pony is a must ‘do for sunny day adventures. Styled with loose, bohemian chic waves, the Dreamweaver will have guests channeling their inner flower child as they hit the beach, pool or wherever their summer days may take them.

“We’re so excited to launch this year’s Summer Hair Menu. With new styles and trends continuing to emerge, it was such a fun experience creating a menu of offerings that would give our guests fresh looks for the season,” said Michelle Scrivner, corporate educator at Blo Blow Dry Bar and contributor to the Summer Hair Menu. “When developing new styles for our seasonal menus, there are two things we like to keep in mind – the consumer and the weather. We looks were designed to withstand the heat and humidity and give our guests chic and trendy looks they can rock all summer long.”

Blo Blow Dry Bar is also recommending products to help guests maintain their summer styles after leaving the bar, such as the UNITE 7 Seconds Glossing Spray, which fights frizz and provides incredible shine, and the UNITE 7 Seconds Refresher. which is great for fresh and clean second day hair. These products are available for purchase at all Blo locations.

Recognized as the original blow dry bar, Blo Blow Dry Bar believes in creating an inclusive space where people of all ages, ethnicities and orientations can feel welcomed, represented and gorgeous. Combining a chic and modern design with a fun and lively environment, Blo creates a seamless and enjoyable experience for guests from start to finish. Expertly trained bloers are available for consultation seven days a week to meet the needs of all customers. Blo’s main hair menu includes seven signature styles to choose from, ranging from a sleek ponytail to flirty and bouncy curls.

For more information on Blo Blow Dry Bar, visit www.blomedry.com, or stay up to date on latest news on Facebook or Instagram.

About Blo Blow Dry Bar

Blo Blow Dry Bar is the original blow dry bar and the world’s largest blow dry bar franchise. The company transformed beauty norms and reinvented the salon industry when it launched the “no cuts, no color” concept: only blow outs. Since opening its first location in Canada in 2007, Blo has grown to over 130 locations across the U.S., Canada and the Philippines and continues to expand rapidly. With a mission to enhance the lives of those in the community through the power of flawless blow outs and beauty services, Blo Blow Dry Bar offers perfectly styled hair and exceptional customer experiences seven days a week. For more information visit www.blomedry.com.

3 06, 2019

Why you must believe in yourself before owning a franchise

Alesia Visconti2019-06-03T14:17:22-04:00June 3rd, 2019|

Owning a franchise takes more than hard work, start-up funds and support from your franchisor. Without that essential ingredient – confidence – your operation may be doomed before it starts. Don’t discount this key feature that separates successful franchises from ones that shut their doors almost as soon as they open.

You must lead so others can follow

Owning a franchise inevitably means having employees. It’s your duty to set an example for them. That example should be one of optimism, pride and the expectation of success. Just as an army is only as good as its general, a staff is only as good as the team leader in charge of it.

You must learn to deal with problems

Every beginning franchise has growing pains – and then usually a few more pains from time to time. As the owner, you will ultimately be responsible for arriving at a satisfactory solution. But if you don’t have the belief that you can do so, those solutions will prove to be elusive.

You must play to your strengths

You chose to own a franchise for a reason. It probably plays to your strengths, which may be a combination of team-building, working independently and providing for flexibility. Knowing your strengths is key so that, when you identify problems, you have the self-esteem to know you can tackle whatever may come.

2 06, 2019

Road Show

Audra2019-07-08T13:25:35-04:00June 2nd, 2019|Tags: food truck franchise, food-related franchise, franchise agreement|

Road Show

Thinking of investing in a food truck franchise?
Here’s what you need to know.

by Jonathan Barber

Cost and Model Variations
Some franchises require their franchisees to completely outfit a new food truck to their specifications. This can cause a franchisee’s initial investment to skyrocket well into the $100,000 to $200,000 range. Given the typical operation and sales of an individual food truck, it could take a long time for a franchisee to break even.

Other food-truck concepts may offer their franchisees the ability to choose between a full-size food truck and a trailer. Some concepts may even allow franchisees to purchase and retrofit a used food truck or trailer. This can really be an attractive option to a prospective franchisee shopping for brands on a budget.

All franchisors will probably require the franchisee to submit his or her plans and the final model for approval by the franchisor.

Commissary Costs
Most states, cities, and municipalities require food trucks to be tied to a specific kitchen. This allows the government to know where a food truck is based in the event of a health-related issue. This means food-truck franchisors will require their franchisees to utilize a “commissary” kitchen.

Commissaries have become very popular in cities with lots of food trucks. They have large kitchens that food-truck owners can rent for a monthly fee.

Some food-truck owners will use the kitchens to prepare their food while others simply pay the monthly fee to satisfy the local government’s requirements. Either way, buyers should explore commissary costs before signing their franchise agreement.

Distribution Costs
Just as with any food-related concept, food-truck franchises should have adequate distribution channels in place. Food-truck franchises should try to arrange purchase agreements with national and regional distributors so their franchisees can get food products at reasonable costs. Properly set up, franchisees will benefit from the collective buying power of the entire franchise system.

Insurance
Like any franchise, food trucks must have adequate insurance for general liability. They also need auto insurance. Food trucks will roll up a lot of miles, so franchisees need to examine the mileage provisions of their policies.

Is it for you?
Overall, food truck franchises are hot. They’re typically lower in cost, have loyal social media followings, and they’re scalable. But prospective franchisees need to be aware of the unique requirements.

Jonathan Barber exclusively practices franchise law as a partner at Barber Power Law Group, in Charlotte, North Carolina. He has assisted hundreds of clients world-wide with their FDDs and franchise purchases. Barber also represents emerging and established franchisors. Contact Barber at 980-202-5679 or jonathan@franchise.law.

2 06, 2019

Why Not Use Both?

Audra2019-07-08T13:28:38-04:00June 2nd, 2019|Tags: Business loan, franchise funding, ROBS, Small Business Administration|

Why Not Use Both?

Consider using multiple funding sources

by Mariah Bohn

You’ve probably heard the buzzword “diversification” in relation to the stock market; the practice of allocating investments in various sectors — banking, real estate, tech, energy, etc. — to reduce risk. The reasoning is that by investing in areas independent from the same market forces as each other, their differing reactions will protect you from losing the entirety of your investments to the same economic event.

The same approach is worth considering when funding your business. It’s important to think beyond merely accessing the funds needed to open the doors. You should weigh how your funding strategy will impact both your business and personal finances long-term. Rather than opting for a single method of funding, you might benefit from diversifying—by using a combination of retirement savings and a business loan.

A new business owner will typically choose one of these two options for funding:

Option 1: ROBS (Rollover as Business Start-up)
The ROBS program allows you to access retirement funds from a 401(k), individual retirement account, or another eligible retirement account without having to pay early withdrawal penalties or income taxes. ROBS has no credit-score requirements, needs no collateral, and incurs no debt, which improves the cash flow for the business. It is also generally the quickest way to obtain money.

Option 2: Business loan
You can access up to $5 million through the Small Business Administration (SBA) loan program for start-ups, acquisitions, expansions, and working capital. Business owners who may not qualify for conventional loans may be eligible for SBA loans because the government guaranty helps alleviate some of the lender’s risk associated with start-ups. Conventional loans, which are primarily used for expansions and upgrades, are available to strong borrowers with prior business ownership experience.

Option 3: ROBS + business loan
If you have retirement savings and meet the eligibility requirements for a business loan, you can combine these two methods to ensure more flexibility as your business grows.

quote

Here are some benefits of the combined, or diversified, strategy:

If you supplement a business loan with the ROBS as an equity injection, you’ll have access to more total funds but have a smaller loan and lower monthly payments than if you financed the business solely with a loan.
You can use a business loan to supplement the ROBS, reducing the amount taken from retirement funds.
You’ll have a reserve of available funds for future expansion. For instance, if you’re considering a multiunit purchase, this method preserves liquidity for financing subsequent units.

Many factors contribute to determining the best funding solution for each situation. To help you understand all of your options and the longterm impact of each, contact the franchise funding experts at FranFund for a free consultation: info@franfund.com or 877-FRANFUND or visit bit.ly/frandfund-fd.

Monthly Archives: June 2019

ABOUT N-HANCE WOOD REFINISHING™

About Assisted Living Locators

About Venture X

About UFG

About NEXTAFF

About Blo Blow Dry Bar

Road Show

Thinking of investing in a food truck franchise? Here’s what you need to know.

Why Not Use Both?

Consider using multiple funding sources

Thinking of investing in a food truck franchise?
Here’s what you need to know.