The Small BusinessAdministration reports that

there are morethan

franchisors in the US3500

3500

If $263,000 is a little too much for you. franchisedirectr.com lists franchises that require less than

in startup cash

http://www.franchisedirect.com/investment3/

Or go to Entrepreneur Magazine for their list of franchises that you can start for

less than

http://www.entrepreneur.com/article/246415

209 $75,000

200

$100,000

0.68%

The default rate on SBA loans toHoliday Inn Express franchiseesfor the decade ending in 2011

was just

Specifically: only out of SBA loans disbursed totheir franchisees went into

default in that decade

0.68%

2295

0.68% Of the thousands of franchise

brands whose franchiseesreceived SBA loans, only had zero defaults during that

decade.

Although none had as many loandisbursements as Holliday Inn

Express

52

http://www.bluemaumau.org/sba_franchisee_failure_rates_brand_2012

52

http://www.bluemaumau.org/sba_franchisee_failure_rates_brand_2012

Of the brands that had perfectrepayment records

were from the lodging industry12

52

http://www.bluemaumau.org/sba_franchisee_failure_rates_brand_2012

One great advantage hotle/motel franchisees have is that theyusually own the real estate the business sits on. As long as theproperty appreciates in value the franchisee can sell the land to

pay off loans ..... even if the business struggles.

In most other industries the franchisee leases the property. Oftenfrom the franchisor.

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