Liking a franchise system’s business model isn’t the only factor in your decision to commit. You also need to make sure you can afford the investment—as well as know how you plan to pay for it. Fortunately, aspiring entrepreneurs have a wealth of options when it comes to financing a new small business. If you have your heart set on opening a SpeedPro Studio, take a closer look at the cost of our business and potential funding paths.
The cost of opening a SpeedPro Studio
SpeedPro’s light manufacturing business has the benefit of an affordable start-up investment and a low overhead model. This means our Studio owners can launch and continue to operate their businesses without extremely high costs. Per the SpeedPro 2022 Franchise Disclosure Document (FDD), the estimated initial investment for a new SpeedPro Studio is between $250,730 – $327,340.
This investment range includes a number of important costs and fees, including the initial franchise fee of $49,500 and a $20,000 initial investment into the SpeedPro marketing fund. It also includes our startup package, which gives new SpeedPro franchise owners all the equipment and tools you need to launch your business. An itemized list of costs associated with the initial investment can be found detailed in Item 7 of the FDD.
Factors that may impact SpeedPro investment
While some costs to open a SpeedPro are fixed, there are some factors that might raise or lower your startup price.
For example, the location you select for your Studio can impact your initial investment and/or monthly costs. SpeedPro Studios should be located in commercial corridors surrounded by many other businesses to serve. The cost to purchase or lease a property may fluctuate based on your chosen territory and neighborhood.
A commercial vehicle may also increase your initial investment costs. SpeedPro owners will need a vehicle to operate their businesses. You may choose to use your personal vehicle or buy/lease a vehicle specially for the business. Vehicles are not included in the SpeedPro startup package, so this is a cost you’ll need to factor into your initial investment plan.
We also offer discounts for those who serve our country! Veterans and first responders are eligible for a discount on their initial franchise fee, which reduces the startup investment.
Finally, your investment costs may differ if you’re buying an established resale Studio rather than launching a new location. If a resale business interested you, a SpeedPro franchise development team member can discuss available resale opportunities and provide investment details.
Top SpeedPro funding methods
There are a few popular methods to help you finance the cost of your SpeedPro Studio. It’s a good idea to weigh your options and determine which funding method makes the most sense for your current and future financial situation.
- Conventional loans: Banks and other lenders typically offer conventional term loans for small business expenses. You’ll get all the funding you need up front and pay the lender back in monthly installments, plus interest. Term loans are great for covering almost all your startup costs or for plugging funding gaps if you plan to use personal savings.
- SBA loans: The Small Business Administration (SBA) backs certain types of small business loans with a network of lenders. These loans are similar to conventional loans but generally provide more favorable terms and interest rates.
- 401(k) rollovers: You can also consider equity (non-debt funding) for your business, also known as a Rollover as Business Startup (ROBS). This process allows you to take a retirement account from a previous employer and roll it into a new 401(k) for your business, then invest those funds into your franchise. ROBS is IRS-approved and there are no early withdrawal penalties. You’ll need to work with a third-party administrator to make sure this structure is set up and managed appropriately.
Although we do not handle franchisor financing in-house, SpeedPro can connect you to our network of financing partners. These partners have experience with SBA and conventional loans as well as 401(k) rollovers, meaning you’ll have support, no matter which option you choose.
Exploring financing options is a core part of the SpeedPro discovery process. Once you’ve begun your journey to Studio ownership, we’ll walk you through the details and help you understand all the costs and funding choices available to you. Get started by requesting more information about SpeedPro!