The Professional Car Detailer

DetailXPerts is the worldโ€™s first eco-friendly steam car detailer franchise. Our unique patent-pending technology saves tons of water. Thousands ofย satisfied customers around the country and beyond its borders recognize its uniqueness, brilliant results and environmental friendliness.

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What You Should Know About an SBA Approved Franchise

What You Should Know About SBA Approved Franchises

What You Should Know About an SBA Approved Franchise

Thereโ€™s a misconception about SBA approved franchises. Some people think that joining these franchises is a surefire way to success. But is it really this simple? Whatโ€™s the real deal with SBA approved franchises? How can they help you, the would-be franchisee? Read on and find out.

What Are SBA Approved Franchises?

Choosing the path of SBA approved franchises is one way of securing franchise financing. When a franchise submits its disclosure documents to the SBA, the organization reviews them and assesses if the franchise is acceptable for an SBA-backed financing. In other words, it gives a false impression that franchises with an SBA approval offer products or services that are of better quality than those that are not included in the list. Knowing this, you may wonder if there are any advantages and/or disadvantages of joining SBA approved franchises. Letโ€™s explore.

The Pros of SBA Approved Franchises

Perhaps the best advantage of an SBA approved franchise is that it can provide startups like you with easier loan approval. This is because the SBA serves as your backer to get the loan. In the event that you fail to pay the entire loan, the SBA guarantees to return 75% of the loss to the lender.

For example, you get financing of $200,000 and you fail to pay. The SBA will pay the lender $150,000. So, having this support, you can think of your loan application as pre-approved โ€“ all you have to do is to prove that personally, you are a qualified borrower.

Another advantage is the cap in interest rates. This means that whatever happens, you pay the same interest rate, no more, no less.

Also, with SBA approved franchises, you have the advantage of lower down payment requirements. This way, you can use your savings or other funds for extra equipment, marketing, and so on. Some loans even have continued support to help you launch and operate your business.

The Cons

A franchise that is SBA approved does not equate to a successful business. The only thing that the SBA guarantees is financing, not the profitability of a business. So, you still have to do your due diligence. You have to read reviews about the franchisor, interview previous franchisees, and market your new business to ensure its success.

Another disadvantage is this โ€“ if you have personal assets and you declare those properties in your application, lenders can put a lien on them to ensure security of their funds. In the event that you fail to pay, your personal assets can be put on hold until you can settle your loan. This can seriously impede the growth of your business.

Examples of Successful SBA Approved Franchises

ClaimTek

When it comes to the medical or dental billing industry, Claim Tek is one of the most trusted names.ย It offers flexibility and enormous income potential. Prior experience is not necessary.ย To start, you need to invest $21,995, have basic computer skills, and undergo training for one month.

Delta Restoration Services

Delta Restoration Services offers complete reconstruction services to restore structures to their pre-loss condition. It is a leader in the recession-resistant insurance restoration industry. Its unique selling proposition is an industry leading proprietary software and technology for scaling from one to a thousand jobs. Minimum cash requirement to start is $60,000.

Talem Home Care

With over 40 million Americans over the age of 65, Talem Home Care presents a viable business opportunity for those who want to become a franchisee. It limits franchise territories to two per metro area and provides a 4-week extensive training and unlimited support. The minimum cash requirement to join this franchise is $50,000.

Pet Supplies Plus

Americans love their pets – so why not provide them with the supplies they need for their best bud?ย Pet Supplies Plus offers natural pet foods, toys, services and more. It has its own e-commerce platform and a buying power of more than 450 stores. Minimum cash requirement is $200,000. Training and support provided.

DetailXPerts

How about grabbing a slice of the $38 Billion car and truck wash market? Then, DetailXPerts is one SBA approved franchise you might want to look into. We offer flexibility in terms of time and income. You can start with just one unit and gradually increase to as many units as you want. โ€ŽThe total investment to start this business with an eco-friendly advantage is $73,000 – $182,000.

Conclusion

SBA approved franchises can help qualified individuals start their own business. However, a franchise possessing the SBA badge does not translate to instant success. Whether you prefer to finance your franchisee business through SBA, or buy an SBA franchise for sale, or seek another type of corporate loan, you have to do your due diligence as well as know the pros and cons before signing any document.

If you are seriously considering becoming a franchisee, check out the DetailXPerts franchise opportunity and the affordable franchise cost involved. You may also want to sign up for our monthly newsletterย to stay updated on all things franchise!

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