4 Strategies to Finance a Merle Norman Cosmetics Franchise

Financing can make owning a beauty cosmetics franchise more affordable

There are a number of ways you can finance a Merle Norman cosmetics franchise. While there are many realistic financing options, some may better fit your needs than others. Taking the necessary time to research and understand how each one works, and how each one will benefit you, will not only help you choose the best option that fits your needs, but also help you achieve your dream of business ownership.  

For nearly a century, Merle Norman Cosmetics has been committed to helping entrepreneurs succeed in business. Not only do we offer a low cost of entry, but also our proven business model is designed to maximize your return on investment. There are three ways to franchise with our beauty cosmetics franchise, which include opening up a new franchise, purchasing an existing franchise, or adding a Merle Norman Cosmetics studio to your existing retail business. 

The initial investment to begin operations of a new Merle Norman Cosmetics franchise ranges from $34,803 – $186,500 depending on the floor plan and location you choose to open your clinic. Additionally, franchise owners with Merle Norman do not have to pay any franchise or royalty fees, and we reimburse up to 60 percent for local marketing and advertising costs. Although we don’t offer direct access to financing, we do have relationships with third-party lenders who can help you make the right financing decision.

merle norman cosmetic industry

Here are four ways entrepreneurs can secure the funds necessary to finance a Merle Norman Cosmetics studio:

SBA loans

U.S. Small Business Association (SBA) lending has made a strong comeback as the economy has improved, and it is much easier to obtain an SBA loan than it was a few years ago. These are government-backed loans at low-market rates, which eliminates most of the risk for banks.

Advantages: You can finance a percentage of the cost of your business, which allows you to conserve cash. The interest rates tend to be fairly low, there is no prepayment penalty, and you can obtain better loan terms once you have a proven track record.

Things you should know: It can take three months or more to obtain an SBA loan and the loan also  requires 100 percent collateral. If most of your collateral comes from home equity, you may want to consider a home equity loan instead.


Bank Loans

With a bank loan, the bank will provide you with financing to run your business. This loan will have to be repaid over a period of years.

Advantages: A bank loan is a good way to finance a business as lines of credit are helpful to handle cash flow shortages.

Things you should know: Getting a bank loan can be difficult because the bank’s main interest is getting its money back, preferably through the cash flow that your business generates. Ultimately, the bank will only provide you with funds if your company has a proven track record of success.


Credit Unions

Advantages: Because credit unions are nonprofit organizations, they do not have to pay state and federal taxes. As a result, they are able to offer low interest rates for qualified borrowers. Additionally, account holders at credit unions are seen as members and not customers, which means that the credit union may be flexible when it comes to its lending policies.

Things you should know: Since credit unions are often small, business owners not only have to qualify for membership, but should also do their due diligence to ensure the credit union offers the lending service they need. Not all credit unions are the same, and they have their own lending programs and policies in place.


Friends and family

You may have friends or relatives who are willing to invest in your success.

Advantages: They know you, they are typically flexible on repayment terms and they may have expertise that they can offer your business. They may not require collateral.

Things you should know: If the business doesn’t meet expectations, it may strain your relationships. Family and friends may also seek equity in exchange for your investment, which would create a partnership arrangement.


Ready to open a Merle Norman Cosmetics studio in your community? 

Merle Norman Cosmetics franchise is poised for growth throughout the country. We anticipate adding at least 42 new studio franchise units this year. Extended to entrepreneurs beginning in 1931, then by Merle Norman herself, our franchise opportunity gives franchisees personal and professional fulfillment as Merle Norman Cosmetics studio owners. 

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