is a great crowdfunding platform for those who wish to open a franchise business. This can help you to open your franchise with less financial difficulty and have you with your doors open much more quickly. Owning a franchise lets you own a piece of your favorite brand and increases the likelihood that your business will be successful as the brand name already has standing within the community. Crowdfunding your franchise is an entirely different way to come up with the funds you need to get your franchise and become a franchisee.

CrowdFranchise helps you choose the right business to franchise in your area through use of its online community and allows them to fund franchises which they believe will help to make the community a better place for those who live in it, create jobs, and encourage economic development. Investors are able to invest in proven brand franchises based on the current market before you launch. Existing and prospective owners who use the service maintain and operate the business within their community and are verified and approved by CrowdFranchise. This means you won’t have to worry about the reliability or reputation of your investor as they have been screened and accredited.

Most new businesses have a failure rate of 84% in the first 10 years of operation. This can make investing a bit of a risk in many ways. Franchises already have a strong brand loyalty and have a 90% success rate at the same 10 year marker.

Owning a franchise comes with expenses but the brand recognition makes them worth their while if your business is successful. Plan to raise funds for legal fees, franchise fees, real estate or development fees (location, construction/remodel, equipment), and franchisee training fees. In addition, franchise owners are required to pay ongoing fees such as royalties and marketing to the main franchise.

This platform works for investors as they are able to invest as much as they like to become an owner of their favorite brand without risking losing money for something that doesn’t gain enough steam to come to fruition. Finances are held in escrow until the campaign is over and the fundraising goal is met. Should the campaign be a success, investors receive monthly returns from the franchise but must keep in mind that no one can guarantee investments and returns.

This system works using a convertible debt model and will see your investment returned through monthly payments for the first 50%. The remaining 50% of your investment allows you to convert it to equity or opt for continued payments. Investors do not have to pay any fees to CrowdFranchise but owners have an initial fee of $299 then monthly fees of $99 thereafter for the duration of their campaign.

Should the campaign not reach its goal, the campaign duration may be extended by the owner or the funds will be returned to the investor. If funds are returned and the franchise opens at a later date, the investor who received a return will own no equity in the business.

We expect to see some very innovative investment products from as the laws covering equity crowdfunding are modernized. This will likely include P2P lending to individuals looking to finance the purchase of a franchise location and added equity options for investors looking for additional risk and upside potential.

Founder of CrowdFranchise, Mandy Calara offered this letter to the SEC regarding rule-making for Title III of the JOBS Act (which authorizes federal equity crowdfunding)