As we’ve discussed in many of our previous blog posts, there are a lot of factors that go into selecting the right franchise opportunity. The factor we want to focus on today is finance. With most franchises, you’re going to need a down payment, as well as a line of credit. By securing these two types of financing, you’ll be able to get started as a franchise owner and take care of all necessary operating expenses.
Leasing vs. Owning
One of the reasons All About Kids is the fastest growing child care franchise in the Midwest is we’re truly committed to helping every one of our owners find lasting success. While plenty of franchisors only care about selling a location and then moving on to the next sale, leaving new owners to fend for themselves, All About Kids is focused on the long-term success of our operations as a whole. Because we have this view, we put a lot of effort into providing our owners with the absolute best support. This support begins before new owners even break ground on a new learning center.
Our commitment to owners begins with providing guidance on whether leasing or purchasing the land and building where an All About Kids center will operate is best. We have an expert team that can help you explore and evaluate these options based on your specific situation. Once you determine which options makes the most sense for you as a franchise owner, we’ll provide the same type of assistance with financing.
Looking at Financing Options
If you decide that you’re going to lease the land and building for your franchise location, financing will be necessary for the equipment, build-out, and operating funds. Many of our owners use the Small Business Association (SBA) 7(a) program for this purpose. The main requirement for this specific program is a 20% down payment. Depending on your exact lease arrangement, it may be possible for you to eventually purchase both the land and building. In addition to financing through a source like the SBA 7(a) program, our advice to owners is to have a $200,000 line of credit for operating expenses.
For owners who decide that buying the land and building for their All About Kids center is the best option, financing is needed for the real estate, building, and equipment. This can be done through the SBA 504 finance program. With this project, a 15% down payment is required for the project’s total amount. We recommend securing a line of credit for the same amount detailed above to cover operating expenses.
Whether you’re thinking about leasing, purchasing or want to discuss these options with our team, the first step in applying to become an All About Kids franchise is to fill out and submit the franchise application. You can use our online contact form to easily request this application.