Once you’ve fallen in love with Uptown Cheapskate, the next step will be funding your business purchase. Buying a franchise might seem overwhelming, but we’re here to help you turn your dream of business ownership into a reality! A solid understanding of the financial commitment you’re about to make and the options you have for franchise funding helps provide a clearer picture during the discovery process.
Uptown Cheapskate makes retail accessible
Although our resale stores feel upscale, they don’t come at a traditional “upscale” retail price point. In fact, Uptown Cheapskate is proud to be one of the most affordable franchise opportunities in the retail space! This is just one of the many reasons Uptown Cheapskate has become one of the fastest-growing franchises in the resale clothing industry.
According to our most recent Franchise Disclosure Document, the total investment to open a new Uptown Cheapskate store ranges from $346,279 to $544,339. This estimate includes the initial franchise fee, real estate costs, licenses and permits, and the cost of obtaining initial inventory.
As far as retail stores go, this cost estimate is quite an accessible one! We believe our franchise cost of ownership makes the dream of becoming a business owner closer to reach for entrepreneurs across the country.
Top ways to fund your resale clothing franchise
There are numerous funding options available to aspiring Uptown Cheapskate owners.
- SBA loans: One of the most common and highly recommended financing sources for new franchise owners is a loan guaranteed by the Small Business Administration (SBA). The SBA works with institutional lenders like banks to guarantee a portion of the loans administered. In turn, this provides business owners more attractive rates and loan terms. SBA loans can cover up to 80% of your initial investment. Applicants must meet a set of requirements, inject a portion of the startup capital and present a well-written business plan to qualify. Fortunately, Uptown Cheapskate maintains strong relationships with several third-party lenders that work with the SBA. We are also registered with the SBA, an important distinction and requirement.
- Bank loans: Other loans may be obtained through your local bank. Bank loans may not have as favorable of terms as SBA loans, but they are still a worthy option for franchise financing. Many banks are hesitant to fund brand-new businesses, but franchise systems build more trust with their track records of success. This means many banks are willing to work with prospective franchisees. Uptown Cheapskate’s financing team can recommend a number of banks that have lent to owners in the past.
- Retirement savings: Many entrepreneurs don’t know that they can put their retirement savings to work for them now through a Rollover as Business Startup (ROBS). By rolling over a 401(k) or another retirement account from a previous employer, you can leverage your retirement funds without paying early withdrawal penalties or taxes. This is not a loan from your 401(k)—it’s actually an investment in your business! ROBS can be used alone or in addition to another form of financing, like an SBA loan.
- Unsecured Loans or Lines of Credit: Entrepreneurs have the option to choose unsecured funding for their business purchase and capitalization strategies, such as an unsecured loan or line of credit. This option is especially for those who choose not to use SBA loans or need a lower loan amount.
Uptown Cheapskate does not offer in-house financing options to help aspiring owners buy their businesses. However, we do offer financial support! Our in-house financial advisor is available to help every new franchisee with their business plan, loan applications and other financing elements. Between our advisor’s help and the low cost of ownership, launching your Uptown Cheapskate location is fast and simple.
If you’re ready to start your very own resale clothing franchise, don’t let financing stand in your way. Request more information and begin your discovery process today, knowing our team has your back through every step.