The average new franchise owner will borrow some of the money needed to open their store. However, it is important to note that a franchise owner should not borrow all of the money, as they do not want to risk dependency on the market’s lows and highs. Another reason for not borrowing the total cost is to keep money and assets for the rough times ahead.
A franchise owner will also want to grow their business and to do so you will need money. In order to grow the franchise, new employees are needed and possibly new equipment. Then of course, if the franchise is successful, the franchise owner will want to open more shops. All of this costs money, and more than likely will require some degree of financing.
