Why BORSA Plans Work So Well with Franchises

One of the most significant advantages of utilizing a BORSA plan for franchise funding is the ability to access your retirement savings to invest in your business, providing a strong capital foundation from the outset. Franchises typically require substantial upfront investment—including franchise fees, equipment, and initial operating costs—and the BORSA plan enables you to use your retirement funds to cover these expenses without incurring early withdrawal penalties or taxes.

For some clients, the BORSA plan can provide 100% of the required capital, allowing them to launch their franchise without the need for traditional debt financing. This approach offers the benefit of starting your business on solid financial footing, free from the immediate burden of loan repayments.

However, many clients find that a combination of capital from a BORSA plan and additional financing—such as SBA loans or other lending solutions—offers the greatest flexibility and financial strength. By leveraging both personal retirement assets and traditional financing, you can maximize your available resources, preserve liquidity, and potentially access more favorable loan terms. This hybrid approach is widely recognized in the franchise industry as a strategic way to ensure your business is well-capitalized from day one, while also maintaining positive relationships with lenders and financial partners.