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You must have some kind of savings in order to start a franchise. How
much you need depends on the franchise. Firstly, figure out exactly what
you are worth.
Assets:
- Real Estate (non liquid asset)
- Car (non liquid asset)
- Stocks / Bonds / Mutual Funds
- Miscellaneous Assets
- Cash
Liabilities
- Mortgage
- Credit Card Balances
- Student Loans
- Car Loans
Subtract liabilities from assets to find out what your net worth is.
You will need to distinguish between liquid and non-liquid assets. Non
liquid assets, are things are difficult to sell immediately, like a house, or a
car, or furniture.
You can probably borrow some of the money needed to start up a business.
However, you will have put up some form of collateral, such as a car. You
will also need a relatively good credit rating. If you default on the
loan, the lender has the right to sell it to repay the balance of the loan.
Think carefully about whether you want to take on a risk like this. Maybe
you want to spread the risk by having a partner.
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