How to raise money to buy your dream franchise business

By Sam Christopher Lim, Senior Vice President, Francorp Philippines

Posted at Jul 06 2014 03:51 PM | Updated as of Jul 07 2014 06:51 PM

MANILA, Philippines - Starting your own business takes time and money. And one mistake a lot of people wanting to start a business is choosing a business that they are not passionate about just because that’s the only one they could afford.

Franchising is a long term commitment and the most important thing is being excited and passionate about the business.
But money is, of course, still a big consideration.

So if you found your dream business and are just short of a bit of capital, here are some tips on how raise money for your franchise:

1) Find an investor

Start by preparing a business plan for your franchise. Understand the business and talk to other franchisees to get a better understanding of the profitability. Once you’re ready, then you need to sell the idea to an investor.

There are many people looking for cash to invest, but don’t have time to start their own business. So if you have the time, then look for others who have the capital. Do you have relatives working abroad? Instead of buying condos as investments, have them invest in your franchise business and help them grow their capital. Approach friends and contacts who’ve expressed a desire to open a business and share your idea with them.

2) Talk to the franchisor

Most mature franchisors are looking for determined and committed individuals to be their franchisee. If you impress them with your knowledge of the business and your perseverance, they may help fund part of your initial inventory or capital, while some may even postpone the payment of royalties and franchise fees.

3) Get a franchise loan

With a USAID study showing that franchises have a 90% success rate, many banks have now started to extend loans to franchisees. If you have a good credit rating and have a stable income, then take the opportunity to get a loan from the banks through programs such as the BPI KaNegosyo loans to fund your dream business. In fact, a lot of large businesses started up with a shoestring budget and loan, so you can start in the same way.

Franchising is a long term commitment, so make sure you are passionate with whatever business you decide to start. If you do decide to get a loan, make sure it is an amount you are personally comfortable with and also that the business will be profitable enough to pay back the loan. With so many different ways to raise capital, it’s never been better to start a franchise.

Franchise Talk is a content partnership of with Francorp Philippines. For more on franchising, contact Sam Christopher Lim at [email protected] or visit

About the author:

Sam Christopher Lim is the Senior Vice-President for marketing & strategy at Francorp Philippines. He has over a decade of global marketing experience from Bangkok, Shanghai and most recently London. He is a multi-awarded marketer who graduated with distinction from Oxford University and was awarded with the Young Market Masters award. He is also currently Chair for ASEAN integration for the Philippine Franchise Association.