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How to buy a franchise with no money even with bad credit

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Franchise Opportunities

Are you looking to buy a franchise with no money? If so, this is the article for you.

Franchises are a great investment because they have already proven itself. The franchisor has done the hard work building the business from the ground up and you now get to come in and invest in a profitable tried and true business model.

Before we dig deeper, let’s first define what a franchise is.

What is a Franchise describe a franchise (or franchising) as a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system. 

Chik-fil-A is a great example of a franchise. The franchisor (orginal owner) established the brand for their company and as a franchisee (you), you would pay a royalty and initial fee to them to do business under their name.

Thankfully, with a business like this, you won’t have to do a lot of marketing because this brand has already been established and you get to profit off their name. 

BUT, there is a HIGH cost involved. We don’t want to deter you from buying a franchise but we do want you to know all of your options before you decide on such a big investment. 

There is a business you can buy that:

  • Runs on autopilot
  • Has no physical inventory
  • Doesn’t require hours of blood, sweat and tears
  • Doesn’t take 5+ years to generate profit
  • Generates multiple 4-figures of NET revenue month after month, like clockwork, from month 4 on GUARANTEED!

But we’ll talk more about this in a minute because we want to first show you how to buy a franchise with no money. 

It’s important to understand that most franchisors look for two main things when considering potential franchisee candidates:

  1. Liquidity – How much cash or assets that can convert to cash do you have access to in case you have to cover unexpected costs
  2. Net worth – The franchisor is also investing in you and they need assurance that you’re a strong candidate to take on their brand. If you have a high net worth they have more confidence that you will be able to take on the business and can be prepared for unexpected expenses. 

Which brings us to our next question…

How much does a franchise cost?

According to Franchise Business Review there are 3 major costs to starting a franchise:

1) Franchise Fee: Franchise fees are typically between $25,000 to $50,000 on average.

2) Startup Costs: It depends on the business but some franchises can launch for under $20,000, and others can cost several million dollars. The service industry franchises cost are far less compared to retail or food businesses due to real estate and additional costs. The average franchise business will cost $150,000, according to Franchise Business Review data.

3) Recurring Fees: Royalty fees (4-12% of revenue), advertising & marketing fees, technology fees, and more.

The fees don’t end there either, you’ll also want to acquire the following:

  • Franchise Attorney
  • Business Accountant
  • Building and Construction Costs
  • Equipment costs
  • Material Costs and more.

But what do you do if you can’t afford it?

There are several ways but we recommend doing what the wealthy people do…using other people’s money. 

If you think the wealthy use their own money to buy and invest in businesses, you’ve been told wrong. 

Why would you use your own money, when you could use someone else’s?

Let’s discuss some of the ways you can go about funding your franchise. If your personal credit is not in stellar condition, that’s okay, we can show you how to get around that as well.

how to buy a franchise with no money picture of two men talking

  1. Traditional Bank Loan – This is one of the first and easiest steps to getting money for a franchise, but there are some things they will require from you such as a business plan, financial statements (cash flow statements & balance sheet statements), tax returns, and your personal and business credit history when deciding on how much money to lend you.

It’s important to note when you are borrowing from your local bank they will expect you to start paying a monthly payment or possibly a quarterly payment setup. The interest rate is also typically fixed. 

  1. Small Business Administration (SBA) Loans – You can get $500 – $5 million with an SBA loan. Most businesses are eligible for an SBA loan but they do want you to exhaust your own personal assets before seeking financial assistance from them. The SBA also wants your personal credit in line. They typically do not offer individuals loans when their FICO score is under 670. If this is you continue down to #4 for a solution.
  1. Partnerships – If you can’t afford these things on your own, what about bringing in a partner that can help financially? You handle the day to day and they finance with a share of the profit.
  2. Business Credit without using your Social Security number – The amount of business credit you can get approved for is sometimes heavily determined by your personal finances. The card issuer wants to use your personal finances to see how well you do with your finances and track record on paying things off. Not everyone has a stellar credit history, so it can be difficult to apply for business credit when your personal credit isn’t up to par. 

The way to get around this is to create a business with stellar financial credentials and a robust financial history to apply with credit from your business using an Employer Identification Number (EIN).

A EIN number will be what the credit issuer will use to determine how much they’ll give you in business credit. This route isn’t easy but it’s doable. It can take years to establish personal credit but with business credit you can build it in 3-6 months.

If you follow the steps below this will help you build and establish credit to apply for business credit so you can purchase your franchise with no money (none of “yours” anyway)

Step 1: Establish Business Credibility

To establish business credibility you’ll want to do the following: 

  • Get an LLC
  • Business address
  • Business Phone number
  • Business Email
  • EIN Number
  • Get a business bank account

Step 2: Apply for Business Credit Accounts

  • Apply for business credit accounts that report your business credit reports with Experian, Equifax, and Duns and Bradstreet.
  • Be sure to apply for accounts you will use consistently to establish business credit

 Step 3: Track & Monitor your Business Credit Scores

  • As you add trade references to your reports, track your scores with business credit monitoring. Nav is a great resource to track your scores.
  • Strive to get approved for 20+ trade/business credit accounts. A popular one is Quill that works for most people.
  • Pay everything on time, or early…this builds business credit scores fast!

This is how you build business credit, if you need assistance establishing business credibility, building up your credit, and getting the best rates click here. 

So, what do you think?

Is this something you still want to consider?

Before you answer that let’s discuss another route in something we call purchasing a “business in a box.”

This is a business model where you purchase an online, high-ticket e-commerce business that is completely, 100% DONE for you and RUN for you, and generates a MINIMUM of $7K per month NET REVENUE! And we’re not talking about Amazon dropshipping on products from China either. 

This is a real business, with real contracts, with real wholesale suppliers who are all 100% domestic. That’s right, everything is shipped from warehouses here in the United States.

Sound too good to be true? Check out our interview with CEO Earnest Epps of High Ticket Ecommerce Systems to see the behind the scenes of how he has his own store earning a NET INCOME of $30k-$40k+ per month, on autopilot, and how he’s trained thousands of others around the world over close to a decade, how to do the same.

This business model is extremely predictable, because it is research-based, data driven and follows a framework that has been perfected over close to a decade. It works, every single time, like clockwork. Along with the contract agreement, it is even guaranteed in print I’m the ECom Success Guarantee certificate delivered upon purchase that the minimum amount of NET revenue the business will generate each month is $7k GUARANTEED! 

Click here to learn more.

Whichever business model you choose, it’s important to know where to get financing, so we hope you can use the resources mentioned above. 

Below are the answers to some frequently asked questions.

How do people afford to open a franchise? (PAA)

People can afford to open a franchise for a number of different reasons. Some people are involved in different business opportunities and they are adding a franchise to their portfolio using the earnings they’ve made from their other endeavors. Others may have inherited money and are looking to invest in something or others have borrowed the money to afford opening a franchise. 

Can you buy a franchise with no experience? (PAA)

Yes. When you buy a franchise it also comes along with training. It is the franchisor’s responsibility to train you and your team on the business and understand how they run everything. The franchisor wants everything to stay aligned with their brand, so you don’t necessarily have to have experience but a will to learn and the capital. 

Are you ready to open a franchise with no money? Let us know in the comment section below. 

If you enjoyed this article, you’ll love the information we share with our members and subscribers about Mindset, Investing, Business and Personal Finance. Learn more ways to build your business credit and buy automated income streams, take our Financial Autonomy Quiz at, and identify your path to retire yourself in 5 years or less. 



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