Owning a Business
in Ft. Lauderdale
Beaches, arts, entertainment, and events have made Fort Lauderdale a world-famous destination. This is the “Venice of America,” complete with Las Olas Boulevard shopping, canals perfect for gondola excursions, and a historic riverside. Just two miles north of Port Everglades is Fort Lauderdale’s landscaped beachfront promenade, complete with its trademark white wave wall, brick walkway, and high-end hotels across the street.
Shopping, eating, and exploring the city’s history can all be found along Las Olas Boulevard. A ride on Fort Lauderdale’s water taxi affords an excellent view of the mansions and yachts that line Millionaires Row.
Looking to get in shape? Take a dip in the Atlantic Ocean or work up a sweat at a resort gym while dining on nutritious cuisine at the spa restaurant. You can also take an airboat into The Everglades if you’re looking for some excitement.
Franchise Financing for Ft. Lauderdale Businesses
So, what kind of businesses could thrive in Fort Lauderdale? Anything from restaurants, to entertainment areas – but also ‘behind-the-scenes’ businesses such as construction companies, plumbers, handyman services etc. could be a good business idea for Fort Lauderdale. Let’s say you want to buy a franchise of a successful nationwide company. Where do you start?
The four types of franchises you can open are single-unit, multi-unit, area development, and master franchise agreements exist. A franchisor provides a franchisee rights to establish and run one franchise unit, which is the most frequent. Franchisees may open many units under a multi-unit franchise. An area development agreement gives a franchisee the ability to open many units over a certain period of time in a particular place or to control their territory and share the franchise fee and royalties from each franchise sold in their territory. A master franchise agreement, often known as sub-franchising, allows a franchisee to sell franchises inside its jurisdiction. Master franchisees earn a share of the franchise price and royalties for providing training and assistance. Master franchising and area development are used interchangeably despite their technical distinctions.
The easiest way to finance your franchise is through a term loan. Term loans range from short-term (6 to 18 months), medium-term (3 to 5 years), and long-term (5 to 15 years).
Ft. Lauderdale Franchise Financing Term Loans
Loans specifically designed to assist people buy franchises are known as franchise finance. While conventional company loans may be used to finance the purchase of a franchise, there are specialized financing options and lenders that are more amenable to this sort of investment. In addition, many franchise companies provide financing options that are more suited to the intricacies of opening a franchise site than traditional company loans.
APRs on term loans for businesses may vary from 6% to 99%, and loan amounts can go from $5,000 to $5 million. While the interest rate on such loans is typically fixed, certain lenders may offer you a variable rate that fluctuates with the market.
There is often an amortization plan for term loans for businesses. This implies that at the beginning of the loan, a larger portion of your payment will go toward interest, and in the later stages, a larger portion will go toward principal. Prepaying a term loan allows you to avoid paying interest for the whole term, however certain lenders may impose a prepayment penalty.
These loans usually have 12-month payback periods, although some have 24-month terms. Online lenders provide short-term business loans quickly. These loans are simpler to qualify for than other business term loans, but they feature higher interest rates and demand daily or weekly payments.
Medium-term loans often have one-to-five-year payback durations. Online and bank/credit union lenders provide these loans.
Medium-term loans have higher standards than short-term loans. These products offer lower interest rates. These loans are repaid weekly or monthly, making payments easier.
Although medium-term and long-term loans are occasionally combined, long-term loans normally refer to loans having payback terms of more than five years.
Long-term business loans are slower to finance and harder to qualify for, but they provide low interest rates and appropriate conditions for financing significant projects like real estate acquisitions or company upgrades. These loans are repaid monthly with reduced payments over a longer term. This type of credit often costs more than short-term or medium-term loans.
Term loans are available from online lenders and may be repaid over a certain period of time, often a year or more. The typical amount for an internet term loan is between $1,000 and $500,000. However, some lenders may go as high as $6 million. If you want to borrow more than $500,000, you may need to put up some kind of collateral like equipment or a real estate asset.