Answer: According to my research and experience the odds of buying a legit franchise business with no money down appears unlikely at best. That being said, I am sure there have been a few cases where a desperate or highly motivated franchise owner has sold an existing franchise unit with terms that required no money down- but these appear to be generally rare.  Keep in mind also that the vast majority majority of lenders and and franchisers that offer franchise financing are going to require at least 20% down from the prospective buyer.

Possible Options:

Your best chance in my opinion to buy a franchise opportunity with “no money down” is to find an existing franchise business for sale in your area where the owner is very motivated and negotiable about the terms of the purchase. On line Business for sale directories like bizbuysell.com are a good place to conduct this type of research. You might want also to consider researching low cost franchises for sale that often offer more affordable down payments to get started.

Another option would be to research franchises that offer in house franchise financing to qualified buyers. Some franchiser are currently offering some excellent incentives because of the slow economy.