Franchise Funding 101: How to Finance Your Dream

Jul 30, 2025

24:43

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Episode notes

In this episode, Rick and Suzanne speak on the many ways you can finance your franchise locations.

From bootstrapping with cash to leveraging your 401(k) or even tapping into home equity, this episode explores every legitimate funding avenue.

Suzanne brings extensive real-world knowledge about franchisee behaviors and finance strategies. Her guidance is grounded in working with hundreds of aspiring owners through the complex franchise process.

Rick and Suzanne break down six ways to fund your Alloy franchise, demystify the SBA process, and explain how retirement accounts can be legally used, penalty-free. You’ll also learn why trusts may derail a HELOC and how personal guarantees are unavoidable but manageable.

If you've ever hesitated to open a franchise because of funding uncertainty, this episode will give you clarity and confidence. Tune in and build the path to ownership with insight, not fear.

Listen now and take control of your pricing with confidence.

Key Takeaways

Intro (00:00)

How to finance an Alloy franchise (02:32)

Funding via cash or friends/family (03:13)

SBA loans: pros, cons, and realities (06:24)

401(k) rollover (ROBS): Structure and benefits (11:27)

Using a HELOC: risks and strategy (14:49)

Conventional loans through local banks (17:44)

Comparing timeline and complexity across methods (20:06)

Risk exposure by method (SBA, ROBS, HELOC) (22:08)

Final take on personal risk and commitment (22:52)