Home Features Mastermind Videos About Advertise Blog Network Contact
   

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

Featured Ebook


ebook Famous Entrepreneurs - Modern Empire Builders


Featured Ebook

More Evan Carmichael
Have A Suggestion?

Sales Lessons From Starbucks And Dell

Looking for Franchise Finance? You May Be Sitting On It Already



Looking for Franchise Finance? You May Be Sitting On It Already
   

At present, there are around one million people who start a business every year and the percentage of them that buy a franchise is quite high. The number could have been higher, if all people dreaming of starting a franchise get adequate funding. That is why new financing programs are finding more and more takers and using retirement funds like IRA and 401(k) have become quite a preferred method.

According to the Employment Retirement Income Security Act (ERISA), retirement funds that are in possession of an employer under which the candidate is no longer working can be transferred into usable capital for businesses including franchise opportunities. In order to gain that, you have to create a C – corporation at first. After that, the new corporation will make a retirement plan and the funds available to you will be rolled over to this new plan. With this money, the stocks of the C-corporation will be bought and you as the owner of the corporation can get the money to buy a franchise. The money can be utilized not only for that purpose, but for a variety of other uses such as purchasing real-estate for the franchise, paying franchise fee or other start-up costs and even for business expansion like starting a new unit.

Generally, if you take money from your retirement fund before the age of 59.5, you will be penalized and taxed. But with IRA and 401(K), you won’t have to pay penalty or tax. But you are required to be careful enough while going for this way of starting a franchise. If you are in the fag end of your career and lose the money on dubious franchise, then you may face quite an uncertain retired life. Furthermore, the C-corporation format makes the business difficult to sell and also, you are supposed to work on it yourself. Hence, even if you want to put up your franchise business for sale, you won’t be allowed to do so. On the brighter side, since you are taking loan from yourself only, if it succeeds, you will be rewarded twice fold. Therefore, try to know about it when you have gone for franchise consulting and talk with your franchise attorney and most importantly, go for renowned financial service providers like Guidant Financial Corporation.



Looking for Franchise Finance? You May Be Sitting On It Already - To learn more about this author, visit Ray Flores's Website.

Like this article? Share it with your friends
[Get Copyright Permissions] E-Mail | Print | More  


Related Articles Related Articles
Franchising with all its Success
  This article shows point on why franchising is a better business venture.
Top tips for franchise success
  To find franchise success, you must research about franchising thoroughly. You are supposed to know about the different categories of franchise opportunities available in the market and then settle on one, which wil...
How to Finance Your Franchise Business Opportunity
  You have found the best franchise for you and are really excited about its future and your new business. However, how are you going to pay for it? Many franchises require a significant investment and a large amount ...
Raising Finance to buy a Franchise
  How approachable are banks when it comes to raising capital to buy a franchise?
Finding the Money for a Franchise
  The cost of buying a franchise can be substantial, but you don't have to be a trust fund baby to get into the franchise of your dreams. Find out more...

Related Forum Posts Related Forum Posts
Finance is the primary requirement of business Finance is the primary requirement of business
Re: Info for would be franchisers... Re: Info for would be franchisers...
Re: Info for would be franchisers... Re: Info for would be franchisers...
how much for a franchise fee? how much for a franchise fee?
Re: Info for would be franchisers... Re: Info for would be franchisers...
Franchises & Taxes Franchises & Taxes
Guerrilla Financing - How to Finance Any Small Business Guerrilla Financing - How to Finance Any Small Business
Which kind of industries are you interested in? Which kind of industries are you interested in?

 
About the Author


Ray Flores
(Visit Ray's Website)
brandEXPANSION is the only firm of its kind serving all aspects of franchising. With our industry background and successful franchise units established around the world, we have a time tested strategy to assist you in locating, developing, advertising, marketing and executing the optimal franchisor and franchisee strategy. brandEXPANSION brings over a dozen years of hands on experience in the field. This gives us an insider’s perspective on the business of franchising, which is an invaluable asset in supporting your objectives. We simplify the franchise experience by providing on going consulting and support designed to deliver the most profitable franchise investment you can attain. brandEXPANSION has placed franchise units in over 1000 locations nationwide. This includes the strategy and writing of franchise documents, over 600 franchise real estate locations selected, over 200 construction projects completed and over 250 proven franchise companies currently represented. The company also operates the leading franchise-industry social networking site, www.FranchiseUltraLounge.com.
Have A Suggestion?

View Author's Blog
brandExpansion Hot Press
brandExpansion Hot Press - Stay up to date with the latest franchise news and opportunities with Hot Press, brandEXPANSION’s daily news and information website. Our staff of writers are dedicated to helping you make the most of your business and providing you information to make the best decision about which franchise industry is right for you.
Become An Author

View Author's Video
Become An Author

Free Downloads


Ray Flores's

Complete
List Of
Franchises
Articles

First Name
Last Name
Email
 
If you enjoyed this article, get Ray Flores's Complete List of Franchises Articles For FREE!
Become An Author