Purchasing a franchised business is a great way to hit the ground running as an entrepreneur. You can take advantage of immediate brand recognition, marketing help from the home office, and often even incentive programs to help your store stand above the rest.

The main hurdle to franchising for many, however, is the buy-in. Just like starting your own business, you often need significant capital to purchase the rights to open your store. In this post, we’ll walk you through a few different ways you can finance your new business.

1. Research the Company Your Interested In

Buying a franchise means you’ll be part of a larger company, even if you own and operate your store. That’s why it’s important to research the company you want to be a part of and ensure you agree with how they do business and their values. You want to work with a company you believe in so you enjoy running your business for the long term.

2. Seek Legal Counsel

There are some complicated details when it comes to franchising, and you want to make sure the deal is as good as it looks. It’s helpful to find a lawyer or accountant who can review the Franchise Disclosure Document (FDD) with you to ensure it’s a fair deal with the company. This also helps you establish yourself with legal and financial professionals and develop a business relationship.

3. Make a Business Plan

Now that you know you’re comfortable with the company and the arrangement, you can focus on financing. Every lender will want to see a business plan, so it helps to prepare this ahead of time. Show them what you’re putting up for collateral, what the sales projections are, and when you expect to make a profit. Your parent company can often help you create this presentation.

4. Improve Your Credit

Finally, make sure you have good credit. If your credit isn’t where you’d like it to be, start taking steps now so it’s improved before you ask for a loan. Pay off a credit card, start paying extra on your car note, or simply pay all of your bills on time to help give your credit score a little boost before you apply for a loan.

Starting your own business is an exciting process. Use these tips to ensure you’re in a good situation when you start looking and applying for loans.