Item 10: Financing

Content: A description of any financing terms the franchisor may make available to the franchisee, if any.

Purpose: This section is to advise the prospective franchisee what funding options are available from the franchisor to fund the business.

Tips & Advice: This is a brief passage in most franchise disclosure documents, as most franchisors do not offer in-house financing. Typically this item will state that. If there are financing terms, they will be listed in detail. Also keep in mind most franchisors have relationships with lenders who they commonly deal with. You should ask the franchisor representative what alternatives are available through third party lending sources.