{"id":38783,"date":"2021-12-15T11:06:27","date_gmt":"2021-12-15T16:06:27","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=38783"},"modified":"2026-06-30T10:46:33","modified_gmt":"2026-06-30T14:46:33","slug":"low-credit-scores","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/low-credit-scores","title":{"rendered":"The Honest Truth About Low Credit Scores And Franchising"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-style-default\"><img loading=\"lazy\" decoding=\"async\" width=\"620\" height=\"310\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/credit-score-franchising-620x310.jpg\" alt=\"low credit score image\" class=\"wp-image-38786\" srcset=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/credit-score-franchising-620x310.jpg 620w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/credit-score-franchising-320x160.jpg 320w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/credit-score-franchising-768x384.jpg 768w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/credit-score-franchising.jpg 1000w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\" \/><\/figure>\n\n\n\n<p>If anyone in franchising tells you your <strong>low credit score<\/strong> won&#8217;t affect your ability to buy a franchise&#8230;they&#8217;re being dishonest. But why would someone do that?<\/p>\n\n\n\n<p>To give you hope.<\/p>\n\n\n\n<p>And if they happen to be <a href=\"https:\/\/www.thefranchiseking.com\/franchise-business-brokers\">the franchise seller<\/a>, they don&#8217;t want to lose you.  <\/p>\n\n\n\n<p>But <em>can<\/em> you buy a franchise if your credit score is less than average?<\/p>\n\n\n<p>&nbsp;<\/p>\n\n\n<h2>What You Need When You Buy A Franchise<\/h2>\n\n\n\n<p>When you buy a franchise, you&#8217;ll probably need a small business loan. Why?<\/p>\n\n\n\n<p>Because most people don&#8217;t pay cash for the required initial investment. They leverage their money through a loan. And small business loans aren&#8217;t always easy to get. <\/p>\n\n\n\n<p>One of the things lenders look at to determine if they&#8217;ll loan you money for your franchise business is your credit history. <\/p>\n\n\n\n<p>For the purpose of this post, <a href=\"https:\/\/www.consumer.gov\/articles\/1009-your-credit-history\" target=\"_blank\" rel=\"noreferrer noopener\">your credit history<\/a> includes everything you&#8217;ve purchased (<em>or leased<\/em>). <\/p>\n\n\n\n<p>Mortgages, car loans, student loans, and even your past history of paying your utility bills are scrutinized. And that&#8217;s what your credit score is based on. Do you know your credit score?<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2>Should You Tell Your Franchise Salesperson You Have A Low Credit Score?<\/h2>\n\n\n\n<p>You may not like my answer.<\/p>\n\n\n\n<p>It&#8217;s up to you.<\/p>\n\n\n\n<p>If it was me, I&#8217;d hold off on disclosing any credit issues you may have. Why?<\/p>\n\n\n\n<p>Because the franchisor isn&#8217;t in the business of loaning money. <\/p>\n\n\n\n<p>Do this instead.<\/p>\n\n\n\n<p><strong>From Franchise Direct:<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>To show the franchisor that you\u2019re able to get a loan and establish your physical roots, it\u2019s a good idea to create <a href=\"https:\/\/pas.go2cloud.org\/aff_c?offer_id=2&amp;aff_id=1430\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">a rock solid business plan<\/a>, and showcase that you\u2019re able to get the financing you need up front. If you\u2019re still not able to get a loan, it\u2019s important that you disclose this to the franchisor. When you\u2019ve done the hard work, there may be other options available outside of traditional financing plans.<\/p>\n<\/blockquote>\n\n\n\n<p>With that in mind, don&#8217;t put the cart before the horse.<\/p>\n\n\n\n<p>You need to work through the franchise discovery process.<\/p>\n\n\n\n<p>That means gaining a complete understanding of how the franchise works, what your role would be as the franchisee, <a href=\"https:\/\/www.thefranchiseking.com\/good-fit-for-the-franchise\">and if you&#8217;d be a good fit<\/a>.<\/p>\n\n\n\n<p>But since this post is more about low credit scores and how your purchase of a franchise business may be affected, I encourage you to read the Franchise Direct article <a href=\"https:\/\/www.franchisedirect.com\/blog\/how-bad-credit-impacts-your-ability-to-buy-a-franchise\" target=\"_blank\" rel=\"noreferrer noopener\">on credit scores and financing<\/a> in it&#8217;s entirety. <\/p>\n\n\n\n<p>Doing so could save you a lot of time and energy.<\/p>\n\n\n\n<p>After all, you want to be your own boss.<\/p>\n\n\n\n<p>Right?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If anyone in franchising tells you your low credit score won&rsquo;t affect your ability to buy a franchise&hellip;they&rsquo;re being dishonest. But why would someone do that? To give you hope. And if they happen to be the franchise seller, they don&rsquo;t want to lose you. But can you buy a franchise if your credit score [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":38786,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[869,25,32],"tags":[849,2095],"class_list":["post-38783","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-equipment-leasing","category-franchise-financing","category-franchise-purchasing","tag-franchise-loans","tag-low-credit-score"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Low Credit Score And Buying A Franchise<\/title>\n<meta name=\"description\" content=\"Don&#039;t be fooled. 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See how here.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.thefranchiseking.com\/low-credit-scores\" \/>\n<meta property=\"og:site_name\" content=\"The Franchise King\u00ae\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-15T16:06:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-06-30T14:46:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/credit-score-franchising.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Joel Libava\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/low-credit-scores#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/low-credit-scores\"},\"author\":{\"name\":\"Joel Libava\",\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/#\\\/schema\\\/person\\\/b560fd324f6df9be52ac875e631beb66\"},\"headline\":\"The Honest Truth About Low Credit Scores And Franchising\",\"datePublished\":\"2021-12-15T16:06:27+00:00\",\"dateModified\":\"2026-06-30T14:46:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/low-credit-scores\"},\"wordCount\":442,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/low-credit-scores#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.thefranchiseking.com\\\/wp-content\\\/uploads\\\/credit-score-franchising.jpg\",\"keywords\":[\"franchise loans\",\"low credit score\"],\"articleSection\":[\"equipment leasing\",\"Franchise Financing\",\"Franchise Purchasing\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2021\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/low-credit-scores\",\"url\":\"https:\\\/\\\/www.thefranchiseking.com\\\/low-credit-scores\",\"name\":\"Low Credit Score And Buying A Franchise\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/low-credit-scores#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/low-credit-scores#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.thefranchiseking.com\\\/wp-content\\\/uploads\\\/credit-score-franchising.jpg\",\"datePublished\":\"2021-12-15T16:06:27+00:00\",\"dateModified\":\"2026-06-30T14:46:33+00:00\",\"description\":\"Don't be fooled. 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