Tips for How to Choose a Bank as a Franchise Owner

If you’re an ambitious franchise owner, your quest for growth has likely already led you to explore various banking and financial institutions to partner with. There’s no question that this search can be difficult and overwhelming as there are so many different options in the baking landscape.

In order to help you find the right bank for your franchise, we’ve curated a few key factors you should keep in mind when trying to determine the best financial institution to help bring your franchise to the next level.

Growth Potential

As a franchise owner, your ultimate goal is likely to expand your business and maximize your profitability. That’s why one of the first things to consider when choosing the right bank is finding one that understands your growth aspirations, aligns with your values and has a proven track record of supporting franchise businesses.

As North One notes, when it comes to finding the right banking partner, look for an institution that can provide flexible financing options tailored to your expansion plans. By partnering with a bank that believes in your vision and has the resources to fuel your growth, you can propel your franchise to new heights.

“If you’re interested in expanding your franchise, you’ll need to choose a bank account that offers financing options to help you achieve that growth,” writes NorthOne. “This may include lines of credit or business loans that can provide the funding you need to open additional franchise locations or invest in new marketing initiatives.”

Comprehensive Services

Another factor to consider when choosing the right financial partner is understanding the services it provides and ensuring it can meet all your needs as a business owner. Running a franchise involves unique financial needs that require specialized support. Whether it’s managing royalty payments, coordinating with franchisees or handling multiple units, the U.K.-based franchise resource Point Franchise notes that you should seek out a bank that comprehends the intricacies of the franchise industry.

“It’s a good idea to choose a bank that has significant experience in the franchising industry, as you’ll benefit from their specialist knowledge,” writes Sophie Cole of Point Franchise.  

Consider seeking out a bank that offers a suite of services specifically designed for franchises. Banks such as First National Bank, Citywide Banks or Old National Bank, for example, all provide franchise-focused services. If you’ve got a few banks in mind, prioritize those with the tools and expertise that can streamline your financial operations and ultimately make your life easier.

Transparent Fees

Make sure the bank you partner with is fully transparent with its fee structure. Hidden fees can greatly impact your franchise’s bottom line, and no one likes to be surprised by unexpected costs popping up at the last minute. Look for a bank that values transparency and provides a clear, itemized breakdown of its fee structure. A bank that openly communicates fees and offers detailed explanations can help you make informed financial decisions and is more likely to earn your trust and lead to a fruitful relationship, which brings us to one of the most important factors to consider when looking for a banking partner.

Relationship and Trust

The relationship and trust you have with your banking partner cannot be overstated. Franchise owners need a partner they can trust and build a strong relationship with. Look for a bank that takes the time to understand your franchise and its unique needs. Having a dedicated account manager that is familiar with the challenges you often face and can provide valuable guidance goes a long way. And as Josh York, the founder and CEO of GymGuyz notes, bank support goes beyond the finances.

“We’ve done workouts in the banks, after hours,” York told Entrepreneur. “Relationships are so important. If I wouldn’t have someone over for dinner, I won’t work with them.”

A trustworthy bank should go above and beyond to support your needs and should act as a reliable partner in your franchise journey.

Finding the Right Partner

While these tips will help guide you in your search for the right banking partner, this is just the start of your journey. Take the time to thoroughly review each financial institution you’re considering partnering with, and ensure that they are there to help you accomplish your goal of growing your franchise.