Franchises and Future Loans
November 22, 2021
by a searcher from The University of Chicago - Booth School of Business in Chicago, IL, USA
Hello -- I've been searching for a business to buy for some time now. I've started considering owning a franchise, as a path to eventually buying a "standalone" business (basically, the franchise would allow me to show some kind of relevant experience to lenders on a future business acquisition, while providing some income during the search process, at least after the franchise is up and running). One question -- I know that franchisors tend to ask for personal guarantees. Would that guarantee potentially preclude a future SBA loan for an unrelated business acquisition? Thank you.
from University of Virginia in Richmond, VA, USA