How do you get liquid enough for a franchise if you don't have the capital.?
I was looking into opening a Sonic franchise but when I looked into the company a franchise owner has to be liquid 0,000. I don’t have that and doubt that all franchie owners are in that good of a financial situation. So I’m curious if you can have an investment group that is that liquid or what. I know that the money to get the thing going would be a loan from the bank and that’s only like 0,000 but how can I show a liquid cash flow.
Most franchises do allow groups (ie. corporations, partnerships, LLC’s, etc.) to open branch location so if $800,000 in liquidity is impossible for you at this point in your life, then the only option is to go into business with a few other people. If you do open a corporation and if you plan to be the active manager and/or play the biggest part out of all the partners in maintaining the franchise you should make sure that you get a slightly higher ownership percentage even if you put in a slightly lower amount of money.
Good luck
There are a lot of franchise opportunities that require less capital than that. I don’t know about Sonic specifically but I do think a lot of buyers for similar franchise opportunities do have substantial capital (what "substantial" mean varies with the requirements of the business of course).
Possibly Sonic is just not a good starting point if you don’t have that kind of dough assembled. How about starting with something smaller or cheaper?
you don’t – Franchisors want Franchisees that have money of their own (not loans),so they know the franchisee has a lot to lose if they don;t work hard and follow all the rules.