New Area Rep for Signal 88 Security Franchise Group

Ready to develop franchise team in New England

Bruce Wildes has acquired the development rights for one of the fastest growing franchise systems in the United States.  Signal 88 Security is creating a paradigm shift.  "We are doing to security services what Amazon did to books and what eBay did to auctions, franchisees get tremendous support from the franchise group.  We provide the latest technologies, do their billing and payroll, and provide them national and regional account sales support, as well as ongoing local training and support.  This business has low overhead to start and can generate immediate recurring revenue." says Wildes.  "I'm looking forward to creating a team of top professionals in the industry, very quickly."      
 

New Area Rep for Signal 88

Michigan and Ohio Area Developer

Terry Shoenberger has recently acquired the rights to develop the Signal 88 Franchise system in Michigan and Ohio through Acadia Business Advisors, LLC.  Terry is the former CEO of regional hardware store chains and was former President of Benjamin Moore's company stores.  Terry has over 30 years of experience in senior business management and marketing and is very excited to be part of the Signal 88 Security Group franchise development team.  Based upon the tremendous response he's seen with prospective franchisees for Signal 88, he hopes to further expand his territory to include additional States, as well.   

Lack of credit impacts franchisees

The outlook for franchising in 2010 is brighter than 2009

'We are pleased that the 2010 outlook for franchise businesses is projected to be more positive than 2009, but access to credit remains a major hurdle to increase jobs and economic output at the levels we have seen during past recoveries," said Matthew Shay, CEO of the International Franchise Association, in a statement. 

The franchise sectors expecting to see the biggest gains in the number of units are quick serve restaurants, likely to grow 3.1 percent. 

At Acadia Business Advisors, we are seeing the most success with franchise systems that are showing positive revenue growth in same store sales, reflecting relative recession resistance; lower initial capital requirements, with financing options available through franchisor.  The buyers are most frequently using retirement conversion plans and home equity loans to provide the required capital on their end. 

Finding the Money to Finance your Franchise

Alternative Financing Options

Finding the capital to fund the purchase of the franchise can often be the most difficult part of the due diligence process for many buyers.  It doesn't have to be, with the right resources and guidance through the process.  There are a few factors that will definitely help.  1.  You need to have a good credit score.  Below 700 is going to be a challenge.  Below 650 and its likely impossible today.  2. Owning a home and having some equity in it.  3.  Having a 401k or IRA retirement acccount.  If you have one or more of these, depending upon the franchise you hope to buy, you have a chance of getting funded today.  The last option is negotiating terms with the franchisor.  Depending upon the concept, some franchise systems will work with the buyer to help with the funding.  These are in the minority, but some are in a position to do so...and are getting deals done as a result. 

One of the most popular means to finance your franchise today is called a retirement conversion plan.  There are several third party finance companies who specialize in this program.  In simple terms, you form a C-corp with shares.  You take a portion of your existing retirement savings and roll them to a new plan in your c-corp.  Your new company now offers a retirement plan to its employee/s and that capital is available in shares of your company to use to fund your business.  As the value of your business grows, the shares value grows.  There are no taxes or penalties incurred with this approach.  There are only the fees of the plan administrator for setting it up and managing it for you. 

Other options include more limited funds through unsecured lines of credit, SBA backed loans, VA programs if you are a veteran, and home equity loans...which typically have the lowest rates and cost.  Another option in the total investment is to lease the equipment required.  There are numerous tax advantages to leasing versus financing, but always talk to your CPA before choosing your financing options.  If you would like to learn more about what is availble for your objectives and situation, please feel free to contact us, any time.  As franchise consultants, we are not a finance company.  We do have a broad set of third party resources and some of us come from a banking background.  Our #1 goal is to help ensure your success with whatever franchise or business opportunity you choose.