An agency relationship arises whenever a person or a group of persons hire another person or a group of persons to perform some service on behalf of the former. The Principal, on whose behalf the Agent performs the particular service, delegates the decision making authority to the agent. Identify the total franchise funding you need. Determine what amount of owner equity you are prepared to put into the transaction. Anywhere from 10 – 40% is typically required. Determine which of the 3 other methods of financing will allow you to cobble together a total solution to finance your new business.