The Unexpected Ways Millennials Are Financing Their Franchises

The Internet has irreversibly changed how businesses operate and people interact. So it should come as no surprise that the generation that grew with the Internet approaches their social and business interactions through Internet tools and technology.

Over half of millennials have expressed a desire to start their own business, such as a hot dog franchise, yet because many carry exorbitant student debt, millennials have found inventive ways to finance their business. Here are some of the interesting and unexpected ways some millennials are financing their hot dog franchise:

Topics of Discussion

• Finding a Grant
• Crowdfunding the Startup Cash
• Attracting an Angel Investor
• Going Online for Loans

1. When it comes to financing anything, nothing beats the freedom that comes with grant money. This type of funding doesn’t have to be paid back and can go toward any aspect of launching a franchise. Of course, with such freedom come hurdles that include locating and landing the right grant for a given entrepreneur and entrepreneurial idea. There are many grants designed to help minority business owners such as women, single parents, and more. Grants can come both from the government and from local trade associations. These grants frequently require extensive proposals.

2. Traditionally, if they don’t have the funds themselves, entrepreneurs are expected to raise their first round of seed capital from their friends and family members. While this is still the path most of today’s entrepreneurs follow, many millennials have taken a new approach by reaching out to their social networks. Websites like Kickstarter and GoFundMe provide a platform for locating funds necessary for a startup or something like a hot dog franchise. On these sites, you can often offer rewards in exchange for support, and donors can donate as much, or as little, as they see fit.

3. Angel investors are continually seeking out great leaders; often, they invest more in productive, capable people than in ideas. However, don’t be fooled into thinking the “angel” in the phrase means that these investors are willing to invest only out of the goodness of their hearts. In exchange for funding a significant portion of hot dog franchise startup costs, they will usually request a significant chunk of equity. But because there are huge benefits in receiving such money for financing, many millennials are happy to seek the financial assistance of an angel investor or two.

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Disclaimer: This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. Franchise offerings are made by Franchise Disclosure Document only.