Franchising Economic Outlook for 2011

Meta-Franchise Consulting's January newsletter is now available! Check out the information on the franchising economic outlook for 2011 and the spotlight franchise this month, Stratus Building Solutions.

SBA Loans and Franchising

It is a common misconception that the U.S. Small Business Administration (SBA) loans money to potential franchisees. Instead of loaning the money, the SBA provides a loan guarantee. If your loan application looks too risky to a bank for a traditional loan, you may apply for an SBA loan through an SBA approved lender. The SBA has approved these lenders and loans made by these lenders will be guaranteed (up to 80%) so your loan application looks less risky to the lending institution.

There are many benefits to an SBA guaranteed loan. Those benefits include:

• Lower capital requirements
• No points or balloon payments
• Longer amortization periods
• Increased loan-to-value financing

Just like banks are pre-approved to be SBA lenders, franchises can be registered with the SBA. The registry is not an endorsement of a franchise by the SBA. Additionally, a franchise not listed on the registry can still be eligible for an SBA guaranteed loan. To be listed on the registry, a franchise must provide the SBA with a copy of the franchise agreement which the SBA will review. Once approved and listed on the registry, the turnaround time and paperwork required are reduced for a potential franchisee.

Need more information on the SBA loan process? Contact Meta-Franchise Consulting.

Tax Franchises: Winners and Losers

Potential franchisees love tax franchises because the initial investment is reasonable, the income potential is great, and they are recession resistant business...death and taxes...right?

UnhappyFranchisee.com just wrote an article about the tax winners and losers of 2010. At Meta-Franchise Consulting I have always felt strongly that I work with the best franchises in the tax industry, and this article helps validate that belief.

The two largest tax franchises (as measured by number of franchisees) are Liberty Tax and H&R Block. I work with Liberty Tax which grew by over 700 units from 2008-2010 while H&R Block lost 261 units.

Tax Centers of America and Roni Deutch also realized great growth in their franchise systems.

Maui Wowi Hawaiian Franchisee Is Blending Up Success

Maui Wowi Hawaiian Franchisee Is Blending Up Success

Maui Wowi continues to be one of my favorite franchises for four reasons.

1. Maui Wowi offers multiple business models to give franchisees flexibility in both where they locate their business as well as varying investment levels.
2. Maui Wowi offers multiple revenue streams with coffee, smoothies, and other Hawaiian products.
3. Maui Wowi does NOT charge a franchise fee!
4. Maui Wowi offers a joint partnership with Doc Popcorn to give franchisees a second franchise and another revenue stream for a small additional fee (significantly less than the cost of two separate franchises).

What are your experiences as a Maui Wowi customer at any of their 550+ franchised locations? Do you want to own your own Maui Wowi Coffee & Smoothie franchise?