Franchise Video

This video was about buying a franchise. There are over 3,000 companies that are sold as U.S franchises. In order to be able to buy a franchise, first you must obtain a FDD. FDD stands for Franchise Disclosure Document. In this document, it gives full disclosure of all fees and cost with getting into that franchise. One of the fees in that document is the franchise fee. This fee can range anywhere from $10,000 to $50,000. Once you have paid this fee there is a potential start up cost that can be worth $200,000. Many franchisees can't afford this so they go to banks to get a loan. Lenders have rely on franchise information to give these loans. Some of the information they rely on is the SBA loan default rate and a summary of stores opened, store closures, and terminations. Also, lenders look for the Small Business Adminstration to guarantee 75% of the loan.

http://www.bloomberg.com/video/74720473/