How to Buy a Franchise with No Money: Exploring the Pathways to Ownership
Daniel Hayes
Owning a franchise is a dream for many aspiring entrepreneurs. It offers the opportunity to operate a business with a proven model, established brand, and support systems in place. However, the significant initial investment can be a huge barrier, especially if you don't have the funds readily available.
The question, “How much is a franchise?” suddenly becomes “How can I pay for a franchise?”
Fortunately, there are several avenues to explore if you want to purchase a franchise without any money. In this blog, we will explore various financing options, including SBA loans, bank loans, business credit lines, home equity loans, franchisor in-house financing, crowdfunding, and financing from family and investors.
SBA Loans
The U.S. Small Business Administration (SBA) offers loan programs that can be a viable option for aspiring franchise owners. SBA loans are partially guaranteed by the government, reducing the risk for lenders and making it easier for entrepreneurs to secure financing.
If you’re wondering how to get a franchise loan, SBA loans are one of the most accessible options.
Advantages:
- Lower down payment requirements compared to traditional loans.
- Longer repayment terms which can reduce monthly payments.
- Lower interest rates.
Considerations:
- Applicants must have good personal and business credit.
- The application process can be lengthy and requires detailed documentation.
Bank Loans
Traditional bank loans are another option for financing a franchise purchase. These loans are typically secured by collateral, such as real estate or other valuable assets.
Advantages:
- Potentially lower interest rates for those with strong credit.
- Clear repayment terms.
Considerations:
- Stringent qualification criteria.
- Requires good credit and substantial collateral.
Unconditional Lines of Business Credit
An unconditional line of business credit offers access to funds up to a certain limit, and you can draw from it as needed. This can be especially useful for managing cash flow and unexpected expenses.
Advantages:
- Flexibility in using the funds.
- Interest is only paid on the amount borrowed.
Considerations:
- Can have higher interest rates compared to traditional loans.
- Requires good credit for approval.
Home Equity Loans
If you own a home, a home equity loan can be a way to access the capital needed to buy a franchise. This type of loan uses your home as collateral.
Keep in mind that depending on the minimum cost of a franchise, your home equity may or may not be sufficient to cover the full expense.
Advantages:
- Potentially lower interest rates compared to other types of loans.
- Large loan amounts are available based on home equity.
Considerations:
- The risk of losing your home if you cannot repay the loan.
- Requires sufficient home equity.
Franchisor In-House Financing
Some franchisors offer in-house financing options to help new franchisees get started. This type of financing is often tailored to the specific franchise model.
Depending on the franchisor, this may also cover some or all of your startup costs, including initial franchise fees and other associated expenses.
Advantages:
- Direct relationships with the franchisor can simplify the process.
- Franchisors may be more willing to work with you on financing terms.
Considerations:
- Interest rates and terms can vary widely.
- Not all franchisors offer this option.
Crowdfunding
Crowdfunding platforms allow you to raise small amounts of money from a large number of people. This can be an innovative way to gather the funds needed to buy a franchise.
Advantages:
- Access to a broad audience of potential backers.
- It can generate interest and publicity for your franchise.
Considerations:
- Requires a compelling pitch and marketing efforts.
- No guarantee of reaching your funding goal.
Family and Friends
Borrowing money from family and friends can be a way to finance your franchise without the formalities of traditional loans.
Advantages:
- Flexible terms and conditions.
- Potentially lower or no interest rates.
Considerations:
- It can strain personal relationships if not managed properly.
- It is essential to have clear agreements in place.
Investors
Attracting investors is another effective way to secure the necessary funds to purchase a franchise. Investors can offer the capital in exchange for equity or a share of the profits.
Advantages:
- Access to larger amounts of capital.
- Investors can bring valuable expertise and connections.
Considerations:
- May need to give up some control of the business.
- Requires a convincing business plan and pitch.
The Role of Consulting Firms: How Does a Franchise Consultant Help?
Navigating the process of buying a franchise, especially with no money, can be complex. This is where consulting firms like Hundred Acre Consulting can be invaluable. They can provide expert guidance and support throughout the entire process.
Here are just a few benefits of working with Hundred Acre Consulting:
- Expert Advice: Their extensive experience and knowledge of the franchise industry can help you identify the best financing options and franchise opportunities.
- Personalized Guidance: Hundred Acre Consulting tailors its services to meet your specific needs and goals, ensuring you have the support necessary to achieve your objectives.
- Comprehensive Support: From initial consultation to securing financing and purchasing the franchise, the team is there every step of the way.
Buying a franchise with no money is challenging, but not impossible. By exploring various financing options, including SBA loans, bank loans, unconditional lines of credit, home equity loans, franchisor in-house financing, crowdfunding, family, and investor options, you can find a solution that works for you.
Additionally, partnering with a consulting firm like
Hundred Acre Consulting can provide the expertise and support needed to navigate the process successfully. With determination and the right resources, you can turn your dreams of franchise ownership into reality.
Book a consultation today.
Are you wondering how long it actually takes to open a franchise? From choosing the right brand to opening day, the timeline may be shorter or longer than you think. Learn more about each phase here.
Explore the different salon franchise models and decide which makes sense for you. Learn why beauty businesses remain one of the most resilient sectors today.
One of the most important decisions you'll make is whether to pursue a single- or multi-unit franchise model. Each offers advantages depending on your long-term vision.
Dreaming of being your own boss, but not sure where to begin? Franchise ownership might be the answer. With built-in brand recognition, proven systems, and lower risk than starting from scratch, it’s no wonder more people are choosing franchising as their path to financial freedom in 2025. Find out why here.
When running a traditional franchise, it’s widely believed that it must be a full-time commitment. This may not appeal to entrepreneurs looking to make a little extra cash on the side. However, another option is semi-absentee franchises that boast short, flexible hours, allowing you to keep your day job or favorite hobbies—all while creating passive income. Learn more about what to look for and where to find these opportunities here.
The growing popularity of heat pumps in the United States reflects a shift toward energy-efficient, cost-effective, and sustainable solutions for residential and commercial spaces. With their ability to address heating, cooling, and air quality needs, heat pumps have become indispensable in modern living. However, maintaining their efficiency and benefits requires professional cleaning services, such as those provided by Vermont’s own We Clean Heat Pumps.
Are you considering investing your time in a franchise but don’t want to be “all in”? A semi-absentee model may be just right for you as it’s one that can be started and run while still maintaining other obligations. Learn more here.
Do you love working with youth? Are you business savvy? The array of kid-friendly franchises available to the entrepreneur is incredible. As parents continue to focus on the well-being of their children, business opportunities to answer that demand are continuing to grow. Learn more about all the exciting possibilities here.
Eco-friendly franchises are on the rise! In 2025, the preference for eco-friendly brands and sustainable products is reshaping consumer markets and driving significant changes within the franchise industry. Franchises are adapting to meet these demands by offering new brands and models that prioritize sustainability. To explore these eco-friendly opportunities, read more here.
Retirement: beach…travel…grandkids…and everything in between, right? Then you wake up and wonder if there will be enough money for all of this. “What was I thinking? I cannot afford this!” Will you be ready? Find out here, plus get a practical list of steps to help make your retirement dreams a reality.
Becoming a franchise owner offers a desirable path for new entrepreneurs by offering access to established and successful business models. One considerable factor for pursuing this career path is understanding a franchise’s earnings potential. The answer to the question, “How much does a franchise owner make?” is quite complex and depends on several variables: The specific type of franchise. The chosen ownership structure. The capital needed for overhead expenses. This article will cover what is considered “average” for franchise owner earnings, which industries offer the highest income potential, and how the type of ownership model can influence income. What is the Average Net Income of Franchise Owners? The average net income of franchise owners can vary widely. According to a study conducted by ZipRecruiter , franchise owners earn an average annual income of a little over $125,000. It’s vital to note that this figure encompasses a broad range of franchise types and operational models. Some franchise owners report earning significantly more, while others may find their income levels below this average. Franchise Industries with the Highest Earning Potential Some franchise industries , in particular, are recognized as yielding higher average net incomes. Some of these include: Food and Beverage: This sector encompasses the fast food and casual dining franchises and produces substantial revenue due to high product demand and continuous foot traffic. Franchisees can earn between $100,000 and $200,000 a year or more. Health and Fitness: Wellness and physical health continue to trend in today’s market, making franchises like gyms and wellness centers very profitable. Owners in this industry typically earn around $85,000 to $150,000 yearly. Business Services: The demand for business services such as financial and marketing consulting remains high, making this sector a high-income possibility. Franchisees in this sector are looking at incomes of $90,000 to $150,000 annually. Types of Ownership and How They Impact Earnings How a franchise is run and how many units an owner has to manage are important factors when it comes to earnings potential. Consider the ownership variables below when balancing profitability with scalability. Owner-Operator vs Semi-Absentee Ownership The operational model of the franchise can significantly impact earnings. Owner-operators are franchise owners who are actively involved in the day-to-day operations of the business. This hands-on approach can lead to higher profitability as the owner is directly managing costs, staffing, and customer relations. Owner-operators typically see higher net incomes due to their intimate involvement in the business.
Franchising has proven to be an incredibly successful business model for countless entrepreneurs, offering structure, support, and a proven system for achieving success. For veterans, the franchise model can be particularly appealing, as it aligns closely with the disciplined and strategic approach they have honed during their military service. Learn more—plus read the exact steps to get started as a franchisee here.
Have you recently fired your boss? Fear not. The decision to leave traditional employment and venture into entrepreneurship is a significant and exhilarating milestone. It’s a choice that symbolizes freedom, independence, and the pursuit of one's dreams. Check out all the compelling reasons why franchising just may be the perfect next step for you.
In full transparency, being a franchisee requires hard work and resilience. We’re discussing the day-to-day experiences of being a full-time franchisee. While the idea of investing consistent hours each week might feel unnerving, remember that this is a fulfilling career choice, and the payoff for your effort and commitment is substantial. Find out what "a day in the office" as a franchisee looks like.
The franchise industry presents a compelling solution to Gen Z’s entrepreneurial desires, offering a blend of security, support, financial accessibility, and flexibility. With a proven track record, strong brand identity, and a supportive community, franchising empowers Gen Z to
pursue their entrepreneurial dreams with confidence and creativity.
Dreaming of building more flexibility into your work/life balance—without sacrificing massive amounts of time and money? Semi-absentee franchise ownership may be the answer you didn’t know you were looking for. Learn what your role entails, some of the best semi-absentee industries, and exactly how to get started.
About 30 years ago, it became commonplace for many franchise brokers to refer to themselves as consultants to evade the stigma surrounding the term “broker.” However, in dodging the negative connotations often associated with brokers, they wound up creating confusion within the franchising community. So … what is the difference between a consultant vs. a broker? Check out our latest blog to find out.
Whether you are looking to complement your day job or diversify your investment portfolio, owning a laundromat franchise is an excellent option to consider. Learn what makes this such a great opportunity for those seeking a rewarding semi-absentee business—including lesser-known benefits—all in our latest blog.
Five years after the pandemic, franchise leaders are afforded the unique opportunity of looking back and evaluating the data to determine which franchises have best survived—and thrived—through the tumult. Savvy investors can use these insights to confidently determine the durability and agility of these companies.
Check out our list of 10 of the best franchises to own in 2025 (that we consider standout opportunities) in our latest blog.
What attributes differentiate the master franchise model from other options? Why is it an exceptionally sought-after choice for entrepreneurs and investors alike? While other franchise models afford specific benefits such as “best for new investors” or “most flexibility in a specific geographic region,” master franchise models stand unparalleled for growth and profitability in several key areas. In this overview, we’ll examine six key financial and operational benefits to master franchising as a passive income strategy, so you can decide if this model is the most suitable addition to your portfolio.
Many aspiring business owners are drawn to franchise ownership for its higher success rates, thanks to specialized support, a recognizable brand, and an established business system. However, running a franchise still presents challenges. Many new franchisees are unaware of additional resources available for support, such as financing options, educational opportunities, or consulting with a franchise expert.
Ready to take the plunge into business ownership? Here are 3 reasons for aspiring entrepreneurs to choose a franchise for their first business venture.
Are you a budding veteran entrepreneur? Here are three franchise opportunities that offer incentives for a veteran business owner.
When franchising, many investors think first of huge chain businesses. But here are a few of the benefits of franchising with a smaller company.
As a Certified Franchise Consultant (CFT), I assist clients in understanding the franchise industry and reaching their business ownership aspirations. My clients benefit from my advice, education, and coaching services. I introduce them to businesses that align with their backgrounds and ambitions, helping them determine whether becoming a franchisee will help them achieve their goals and is suitable for them personally. The mission of Hundred Acre Consulting is to promote community and economic development by aiding families and individuals in achieving their dreams of business ownership. I do that by starting with a portfolio exceeding 800 franchised brands across 78 industries. Hundred Acre Consulting is a comprehensive, certified franchise consulting and referral firm serving clients in the United States, Canada, and 80 countries around the world. My approach is unique as I focus on my clients’ lifestyle goals and financial objectives. I assist my clients in evaluating whether franchising is a viable option to meet their absolute goals and objectives, and if so, which business models would be most effective. For me, understanding the client's reasons comes first, followed by how they can achieve their goals, and finally, what the business does. I began consulting in the nonprofit, entertainment, and franchising sectors in early 2008. Since 1983, I have been coaching emerging and established enterprises and organizations in both the private and public sectors, focusing on business development and contributing to economic and community growth.
Considering franchising? You might be debating between a popular mega-brand or a smaller company. Most investors choose franchises for the well-known brand name, which reduces risk and offers a proven business model while allowing them to run their own business.
While some enjoy winter days by the fireplace, others see it as a time to invest in a lucrative franchise. The holiday season offers great opportunities to boost income. Some franchises thrive in winter, while many succeed year-round. If you're thinking of investing this winter, consult a franchise expert who knows the industry. They can help find a business that fits your needs and skills. Unsure about starting a franchise now? Here are some profitable winter-friendly franchise ideas.
Consider the advantages of owning your own business: the ability to act as your own boss, set your schedule, and exercise control over both your financial stability and lifestyle. This goal is attainable. It is not an unrealistic aspiration or reserved for others alone.
There are numerous franchise opportunities available for prospective investors, including notable options from the Franchise 500 list. At Hundred Acre Consulting, our mission is to assist you in identifying the franchise that aligns perfectly with your individual objectives as you strive for an enhanced quality of life for yourself and your community. How can we ensure that we are the ideal partner for this mission?
When individuals become franchise owners, one of the primary benefits they expect is operating under an established brand name. While this is generally true, it is still necessary to develop a comprehensive and brand-consistent marketing strategy for the franchise. Although being a marketing expert is not required, understanding the marketing basics is essential for a franchise owner. The most effective marketing strategy for a franchise depends on the specific industry, so it may be beneficial to discuss methods to expand the customer base with the franchisor or a knowledgeable franchise consultant.
If you’ve chosen to start your entrepreneurial journey as a franchisee, you might have many questions regarding your potential business and its requirements. Franchises provide certain advantages over starting a new business independently, such as having support from a franchisor. Unlike a new business that lacks a track record, franchises come with established and proven business models, along with franchisors who assist in setting up and operating the business effectively. Before finalizing your decision, here are four questions you should ask your prospective franchisor.
Dreaming of starting your own business? Finding the proper franchise involves evaluating different options and considering the potential in various industries. However, the financing and logistics of making your vision a reality require careful planning. It is important to consider every detail. If you are struggling to determine which business opportunity aligns with your skills and financial situation, consider consulting a franchise consultant. Experienced in the industry, they can help you identify the right franchise and guide you through obtaining financing for your new business venture.
When considering becoming self-employed, one might contemplate whether to develop a startup or invest in an existing franchise. So, what is a franchise? A franchise involves a company (franchisor) granting an individual (franchisee) the right to operate a branch of their business. This permission is provided for a specific area and comes with guidelines to ensure brand consistency is maintained.
Prospective business owners should decide whether to start a new company or invest in a franchise. While buying a franchise offers established operations, it doesn't ensure success. Starting a business from scratch has an even higher failure rate. To reduce risks, seek advice from an experienced franchise consultant who can help identify the best opportunities.
Potential investors often focus on the earning potential of franchising but must also consider the risks. Franchisees should be ready to face challenges. Consulting with a knowledgeable franchise expert can help you understand the benefits and risks, enabling an informed investment decision.
W hen most people consider the franchise opportunities available to them, the first thing they imagine is a generic Dunkin’ Donuts or Subway. While those options may be the best for some entrepreneurs, others might prefer to own something with a bit of personality. If you’re a member of the latter group, it’s recommended that you meet with an experienced franchise consultant who can help you find the perfect franchise that matches your interests and goals. There are franchise opportunities for potential franchisees of every personality type and from all walks of life. The possibilities are endless! Here are a few unique franchise opportunities for people who think outside the box.
G iven that the median age of all franchise owners is between the ages of 45 and 54, many younger people are left wondering, “Am I too young to be a franchise owner?” But contrary to popular belief, becoming a franchise owner at a young age has distinct benefits. Most millennials don’t have experience running a business or a robust network of entrepreneurial social connections, making it hard for them to strike out on their own. Owning a franchise can provide support in these areas, already packaged with policies, processes, and networks that young investors might otherwise lack. In addition, franchises have lower startup costs, making them an investment with the potential to serve you for years to come.
Y ou’ve finally signed the paperwork, and you’re officially a franchise owner. Or perhaps, you’re still in the process of discussing franchise opportunities with a franchise consultant. Either way, you should know that your first year in business as a franchise owner won’t be easy. Franchisors might try to tell you that it’s smooth sailing in the beginning, but the first year of franchise ownership is generally the most difficult. It will take time for you to grow a consistent customer base, the work hours will be long, and retaining staff will be challenging. 
C reatives often shy away from franchise opportunities, assuming that these businesses will limit their ability to explore new ideas and express themselves. At a glance, this concern seems valid since franchisors are known to have strict policies and procedures. These stringent regulations determine elements like the internal workings of the franchise and how it should go about marketing. 
F or potential investors, owning mobile franchises can be a dream come true. You get all the benefits of operating your business under an established brand name while forgoing the challenges that come with running a brick-and-mortar franchise. When most people think of a mobile franchise, the first thing that comes to mind is owning a food truck. However, food trucks aren’t your only option —there are plenty of profitable mobile franchises across various industries. If food service doesn’t suit your style, here are a few popular mobile franchises that may provide a better fit for you.
Many people know what it’s like to receive a message from a long-lost high school classmate asking if you’re interested in “learning more about their business.” You click on their profile, and it’s full of posts proclaiming that they love running their business because it allows them to make money working part-time while selling products that they actually use.
A s a self-care staple, beauty treatments are essential to the mental health and wellbeing of people from all walks of life. Herein lie lucrative franchise opportunities for eager investors ready to run a beauty business from the comfort of their own homes. Studies predict that the beauty industry will expand to a market value of $805.61 billion by 2023. So if you love caring for people and providing them with a confidence boost, now is the perfect time to invest in beauty franchises. As technology evolves, the beauty industry is following, making franchising more achievable than ever before. To start your journey, here are a few beauty franchises that you can run from home in 2021.
W ithin the past year, the e-commerce industry has grown exponentially. Of course, this leaves potential investors wondering, is it still worth it to invest in a traditional brick-and-mortar franchise? The answer is yes. Brick-and-mortar franchising has distinct advantages that online franchise opportunities will never be capable of offering. Owning a conventional storefront allows you to service your customers in real-time and build a personal relationship that keeps them coming back. Even with online shopping, providing your customers with a fun, in-person shopping experience will always be in demand. If you’re looking at franchises for sale, it’s still worth considering the traditional route before hopping on the e-commerce bandwagon. Specifically, here are four benefits of brick-and-mortar franchising.
B y 2025, America will require a staggering 2.3 million new healthcare workers to care for the senior population. With this will also come the need for more senior care facilities. If you’re considering senior care franchising, starting your business now can put you in a prime position to take advantage of the coming boom. Owning a senior care franchise is a great way to make a meaningful impact on the lives of older people while securing your financial future. With strategic planning, a solid team, and a supportive franchisor, you can turn senior care franchising into a stream of passive income that keeps on giving. Here are a few tips to point you in the right direction.
T he franchise industry is stepping into the future. Currently, millennials are aged 25 to 40 and comprise over 28% of franchise owners. So what does this mean for franchising as we know it? Millennials look for very different qualities in the franchises they choose to invest in, and they possess a leadership style that contrasts that of prior generations. As they come into their own, millennials are rapidly reshaping franchise ownership with advances in innovation and technology, all while creating a sense of connectedness within their businesses.
If you dream of helping the elderly by owning a senior care facility, the opportunities are ample. In fact, the healthcare industry provides some of the most stable options for potential franchise owners. The percentage of older people in America is increasing every day, with experts predicting that the senior population will grow to 22% by the year 2050.
While everybody else is relaxing and partying this summer, you could be making extra income with the right seasonal franchise. For some franchises, the best time to start building your clientele is during the summer because they are only profitable when it’s hot outside. Each franchise has different start-up requirements, but there’s a lot more to choosing the right franchise than the cost. The franchise you choose must be in alignment with your skillset, knowledge, and personality. So, which of these best seasonal franchises is right for you?
Within the past year, mobile franchising has grown in popularity exponentially. For one thing, new investors realize that it’s much easier to succeed with a franchise than to start their own business from scratch. Add in the low start-up costs and flexibility of self-employment, and it’s easy to see why people are interested in this type of investment opportunity. However, there are two sides to every coin, and running a mobile franchise has a few pitfalls. It’s draining to be the only one in charge of your business, large or small. So, is running a mobile franchise right for you?
So, you’ve finally found the right franchise to meet your needs and aspirations. Congratulations! The next step in your journey is to build a team of dedicated and focused employees. In 2021, this can be daunting. In today’s era, anybody can apply for a job with the click of a mouse. It’s easy to become overwhelmed by the vast number of applications, along with the stress of interviewing each potential candidate individually. Luckily, we have a few tips to streamline your hiring process so that you find the right employees for your franchise business.
Not every franchise opportunity requires long hours and your undivided attention. Semi-absentee franchise ownership is designed to allow you to earn extra money and create a growing enterprise while continuing your current career or focusing on your family. If you hope to grow your semi-absentee franchise, we’ve put together a few excellent tips to help you get the ball rolling.
