Any MFKers Franchise owners?

[JD7.62]

I am in the preliminary stages, well just research stage, into purchasing a casual fast dining franchise. I am in contact through mutual friends with the single owner of the franchise and have the wonderful opportunity to open up a store at an extremely low start up cost.

My main concerns are obtaining a business loan, especially in this economy. However my loan amnt will be small, in the $30-40K range. The franchise is new and still low initial investment, yet is killing its competitors.

I am in a great position in everything but financially (yeah I know the most important). What I do have are local contacts in the area I want to start up in who would be willing to give me some great advice/assistance and are also SBOs themselves, and better yet family. I have a great friend who is in the same industry and does very well who would also give me some experienced advice. My significant other has a steady and secure income (RN) that will take care of home expenses if, and we are prepared to, live VERY frugally in the first few years. I am dedicated and hard working, a real go getter and pay very close attention to detail and things such as cost containment.

If anyone has any words of wisdom or input of any kind it would be GREATLY appreciated! I am trying to get info from as many sources as possible, even right here on MFK!

 

[superleggera123]

GO FOR IT
nothing like starting a business!
a wise man said.. in this world 2 things do well..
number 1 restaurants
and number 2 cemeteries
WHY?!?!?
cause people gotta eat
and people dont stop dieing

 

[csx4236]

I have done this a few times, You need to have a small business plan done and then apply for a loan thru small business programs the goverment runs. That is really your only way to obtain this most regular banks will not approve these type of loans at moment. Also the franchise your looking to buy the company does not finance new owners? Some do.

 

[JD7.62]

I have done this a few times, You need to have a small business plan done and then apply for a loan thru small business programs the goverment runs. That is really your only way to obtain this most regular banks will not approve these type of loans at moment. Also the franchise your looking to buy the company does not finance new owners? Some do.

I am having dinner tonight with my buddy to go over the start of the business plan. I figured going through the .gov will be my best bet. There is also a chance I can get the owner to set up a payment plan with the owner himself, especially since my good buddy and his father has helped him out significantly while he was getting started.

 

[Knowdafish]

Location! Location! Location! Also make sure the franchise company has in the contract that there will be no competing/like restaurants within __ miles. That way they can't legally put in a competitor right across the street from you!!!