- January 22, 2018 at 3:08 pm #151027
Can there be any potential conflict, if you want to buy a franchise, with providing retirement plans to employees if the Franchise already offers their own plan? Or conflicts with the franchises own established rules & policies? Any other specific insight into unique issues of using ROBS for a franchise?
Thank you for your time.
AntonioJanuary 22, 2018 at 3:59 pm #152061
There should only be a conflict if your franchisor restricts you from providing any additional retirement plans. Since the one you offer will be different, and could limit the qualifications of eligible employees more than the franchise retirement plan likely does, then it should be a nice secondary offer to your employees. In fact, your franchise offering a retirement plan could actually reduce the number of eligible employees that actually agree to move forward and invest in your 401k plan.
Franchisees are one of the best fits for ROBS, because a franchise typically has a higher success rate than other startup businesses. It has an established path to potential success, and plenty of support that you may need as unexpected things come up. In fact, FranFund is one of our recommended ROBS providers and about 97% of their clients that use a ROBS are franchises. It’s a good solution in helping you finance a franchise purchase, either as a full funding tool or as a downpayment for an SBA loan (or other traditional loan). Good luck!