Financing a Franchise
Understanding Franchise Financing with Zoom Room
Before diving into financing options, it’s important to understand what franchisors look for in applicants. All franchises have minimum financial criteria to ensure new owners have the necessary capital to launch and sustain their business. This typically includes minimum net worth and liquid capital requirements.
For a single-unit Zoom Room franchise, applicants must have:
✅ Minimum net worth of $750,000
✅ At least $200,000 in available liquid capital
For multi-unit developers (three or more units), these requirements are higher.
The total investment to open a Zoom Room under $500,000, covering everything from the franchise fee and buildout to rent, equipment, and insurance. However, because we anticipate that most applicants will seek financing, we require only $200,000 in available capital.
Financing Options
Most franchisees finance a portion of their investment to optimize cash flow. The most common funding methods include:
✅ SBA Loans – Government-backed loans designed for small businesses
✅ 401(k) Rollovers – Using retirement funds to invest without penalties
✅ Private Financing – Loans from family, friends, or business partners
Why Zoom Room?
With an initial investment significantly lower than most dog-related franchises, Zoom Room offers an affordable alternative to traditional pet businesses. Check out our franchise comparison chart to see how we stack up!
Available Liquid Capital
Understanding Available Liquid Capital and Why It Matters
Available liquid capital refers to funds you can readily access, such as cash in bank accounts, stocks, and other liquid assets. Real estate, including the value of your home, does not count toward this requirement. Likewise, while having an excellent credit score is beneficial, it does not contribute to your liquid capital—nor does your available credit.
Some applicants wonder why liquid capital is required if they plan to finance their investment. The answer is simple: Think of it like buying a home. Before a bank approves a mortgage, they require a down payment—they won’t finance 100% of the purchase price. The same principle applies to business financing. Banks and lenders need to see that you have enough personal capital at stake to ensure you’re financially prepared to launch and sustain your business.
For a Zoom Room franchise, the minimum liquid capital requirement is $200,000, ensuring you have the necessary financial foundation to qualify for financing and successfully open your business.
Net Worth
Unlike available liquid capital, net worth is all encompassing. When calculating your net worth you would include the value of your home and any other real estate as well as funds in retirement or other funds not readily accessible to you.
Your net worth is calculated by simply adding together all of your assets and subtracting from them all of your liabilities.
Assistance with Financing a Franchise
We have partnered with industry leader Benetrends to provide fast and easy franchise financing assistance to Zoom Room applicants. Initially, they can assist you by establishing that you are indeed well qualified to become a franchisee. And if we award you a Zoom Room franchise, they can streamline the process for obtaining an SBA loan or 401K rollover.
SBA Loan
A loan from the SBA (Small Business Administration) is the most common type of franchise financing.
In order to be on the approved list, the SBA must familiarize itself with the terms of the franchisor’s franchise agreement, and scrutinize it for any terms that might be unfair toward the franchisee.
Zoom Room is on the SBA’s approved list. We will have you get a pre-approval through Benetrends and then they will present the package to your local or national bank to fund the SBA loan for your new franchise!
401K Rollover
A 401K Rollover is one of the most popular options for franchise financing, as it allows you to access your funds without incurring taxes and penalties. Our preferred lender, Benetrends, can assist you in this process.
Franchise Financing Calculator
To determine your eligibility, please use this calculator below, provided by Benetrends. They specialize in securing the best financing options for franchisees, ensuring you have access to the most suitable funding solutions. Their expertise extends beyond just loan options—they assist with preparing all necessary documents, including financial records and a comprehensive business plan, streamlining the financing process and setting you up for success.
Once you enter your information in the form, you will instantly see your results appear on the screen below. It will show you which types of financing you’re likely to qualify for, and what amount of funding you may receive.