Show me the money: you don't need big bucks to start a franchise—you just need the right source of funding

Entrepreneur, Sept, 2005 by April Y. Pennington

Find out whether your franchisor provides resources to help you with financing. "Lean on the franchisor as much as possible," says Roth." They know the unique situations, they'll potentially know the geography you're going to open in, and they have relationships with banks or finance companies."

* Visit your local bank. Roth points out that they may be more willing to lend to you based on your individual merits rather than evaluating the industry or strength of the brand. "Use one you have ongoing relationships with, and leverage that one way or another." Roth adds that any relationship with a financing entity, whether it's through a car loan, home mortgage or banking account, is a potential resource.

* Check out franchise finance lenders. Whereas banks and financial institutions typically "look at it as investing in the individual," says Roth, a franchise finance lender "is already familiar with the industry segment and the brand and would focus on that." He points out that franchise finance lenders might take on someone with less equity and more experience if they're comfortable with the brand.

For more information on financing your franchise, go to www.entrepreneur. com/franchisezone/funding.