quizno: I want to aquire an exisiting franchise (owner is retired and doesn't have the ability to run it anymore) of a Quizno's. Hes asking for $75,000 total (including franchise fees). If I got an SBA loan, whats the percentage typically I would have to put down?|||Here's what I'd do: Offer the owner 20% down and have him carry the paper at an interest rate somewhat higher than he can earn on 10 year Treasury notes (currently about 5%). The rate can be floating and reviewed every year. Go for as long a term as possible (5 years minimum). Collateralize the loan using the business. This is a win-win situation all around and beats the bank for both of you. In the first place he has got to be brutally honest with you about the businesses cash flow and P&L. Since he is dependent upon you for the payback he'll want to make sure the business can afford the payment. Second, you get a rate less than you'll get from a bank loan and he gets a rate higher than he can get from safe fixed asset investments. Third, he'll be much more flexible than a bank if a business downturn causes you to have to miss a payment. Fourth, this is usually the way these things are done and honest business sellers know this. Since the business is paying off the loan the interest is deductible as a business expense regardless of what your personal situation is. If he says be wants the $75,000 in cash you can counter by offering more for the business. Paying $100,000 to him requires only an additional $5,000 in cash at 20% down. Forget the SBA and banks and do your deal with the current owner directly. If he insists on cash and is not fully forthright in showing you the books, bank deposits records, franchise agreements, Schedule C or other IRS business returns then run away from this deal: He is trying to sell you a pig in a poke.|||When I checked on something similar a few years ago, they said they wanted 20% down. They wanted to know that I had something invested, too, before they would loan any of it. I would expect it's pretty much the same today, depending on your credit rating and if you have collateral (real estate, or?).|||In my bank Amsouth Bank we usually want 15% down.. If there is no collateral you may want to get a home equity line of credit.. Rates are generally better and the interest in a personal tax write off.... If you are not getting the property (which it sounds like a lease) that may be your only option... Good luck