The lending in the franchise industry has led to a very large business. According to many franchise company information companies, one in Arlington, Va. in particular, shows that franchisees in the United States are going to borrow in excess of $30.1 billion in 2016 to research, develop, implement, and build with brick and mortar new franchise opportunities.
The majority of these monetary outlay amounts will be underwritten by various banking institutions, backed by the SBA in Washington, and may be brought forth with the Venture Capitalists across the country. A business consultancy in California stated in a report that the SBA guaranteed well over 35,000 franchise loans up to and including the end of fiscal year 2014 beginning in 2005. That number has not shrunk, nor will it. SBA requirements make any and all borrowers meet their banking guidelines which, for lack of a better word, are quite militant. Individual owners are pledging their homes, their cars, their possessions, and sometimes their children (just kidding) as collateral. The franchise loan industry has expanded and has brought in many new conglomerates who offer financing under much different conditions. The CEO and chairman of Apple-pie Capital in San Francisco, CA stated that she personally designed the non-bank lender to provide what the SBA cannot: quick loan approval and no personal collateral.
"We launched in January 2015," she said, "with backing from venture capital. We can provide franchise loans from $100,000 to over $1,000,000 in under 30 days." Apple Pie charges a fixed interest rate, starting at 8%. A franchisee in Lafayette, CA opened up a wens salon and it took over six months to secure an SBA guaranteed loan too close. Her and her husband signed on to open up to three hair salons for men. She did not want to wait that long to open the second salon and as a result, approached Apple Pie. They were approved for $350,000 in a few weeks and they will be opening up all of their locations in record time compared with the SBA constraints. Usually the speed in which the money can be made available is worth the extra points on a loan.
IRA's or 401k funds can be rolled over to create enough funds to open a new franchise as well. Rollovers are becoming much easier to liquidate to open up a new business and that is an attractive method. Further, using Franchise Grade to put a report together in order to open up a franchise that has a low closure rate with the best demographics is a great idea. The winning combination of the $1,500 fee for the report and the data contained within can only mean that the content is an excellent hedge against making a marketing analysis mistake. The costs of making a new venture mistake is not to be taken lightly, and when DERMASMOOTH BOUTIQUE decided on this location and business model – they assured that the boutique known as DermaSmooth Boutique would be the premier center for hair removal for men and women. When utilizing the state of the art equipment DermaSmooth made a business decision prior to even knowing exactly where the center would be located...purchasing the "Rolls Royce" of Laser Hair Removal machines. The GentleMax is the finest machine in the industry. This has the best large spot size delivery on the Gentle Series in treating areas such as the back and legs. Overall, this is a great advance in long pulse Alexandrite technology combining the high energy and efficacy of long pulse alexandrite wavelength with a new level of efficiency. (Ann Chapas, Director Union Square Derm)(Mt. Sinai Med. Cntr). When there are large hospitals using the GentleMax Pro we are driven to utilize that same realm of excellence. At no time have we ever thought of another machine for our guests for Laser Hair Removal. This machine delivers only the highest performance in all treatment capabilities. The core competencies of the machinery have proven that this unit delivers more speed and power as well as treatment versatility than any other multi-wavelength laser system on the market today. DermaSmooth only chooses what is best for our customers. When DermaSmooth Boutique chose the Gentle Max system we knew the immense expense would be what is best for our customers. When anyone enters our retail space for laser hair removal they need to be ready for the finest machine on the market today. This is the system of choice for the highest paid plastic surgeons in the United States and, more likely than not, the world. Whether our guests are attempting to gain Laser Hair removal; Bikini Hair removal; Permeant hair removal; facial hair removal; arm hart removal; leg hair removal; chin hair removal; lip hair removal; Brazilian hair removal; Hollywood hair removal; or even Men's Back Hair Removal, DermaSmooth Boutique is here for our guests to assist with any and all types of hair removal. Our guests may be interested in brown spot removal, dark spot removal, sun spot removal, Candela Hair Removal, freckle removal, aging spot removal, laser neck tightening, pigmentation reduction, or even simple face skin tightening the GentleMax is at the forefront of this industry. There is simply no other center in the area with the same investment as DermaSmooth. Simply, DermaSmooth has invested in the community and its guests, not to mention its future guests this proves that DermaSmooth only has one thing in mind what is best for our customers. DermaSmooth hopes to assist in any way possible for all of our future and existing guest’s laser hair removal needs.