Franchises face a multitude of additional expenses throughout the year. From regular operational expenses, employee expenses, royalty expenses, advertising expenses, franchise fees, and more additional fees through the host franchisor.

Many franchises can struggle with maintaining steady cash flow. When a franchise owner gains success with their first franchise location, they often want to try opening another location. However, they are hit with more franchise fees and all the additional expenses all over again. This can add up to thousands if not hundreds of thousands of dollars.

Franchisees constantly having multiple mandatory costly expenses and payments. These can quickly tie up cash flow. It is easy to see why many franchisees turn to alternative financing and business loans to steady themselves.