What Franchises Should Look for In a Bank

1. Locate a Bank You Can Grow With

By James Short, manager of food franchise fund, BBVA Compass

Our franchise-special team is present as a vertical platform inside the lender, so when folks come to us looking for funding , we start off with a Small Business Administration program which will finance solitary units to independent franchisees. Among the hardest things to get a franchisee is growing from 1 unit to multiple components, while it’s two or more 10. But we could help them do this via our SBA program, and as soon as they reach a certain size, we turn into a traditional loan, where we’ve got somewhat better accessibility to funding . So franchisees may have a complete life cycle inside our own bank.

But we see loads of owners return to us, and they have grown and grown but have not taken the opportunity to fall their capitalization construction. We have observed a 50-unit operator with 20 different credit facilities — that is incredibly stressful! We advocate falling that into a single loan, taking benefit of inserted equity, and finding a lender that may provide a growth line of credit which may be used for a large number of jobs. We, by way of instance, don’t need funding, and we do not require invoices: It is all legitimate enterprise lending dependent on the worth of their brand. Our franchise customers, they function restaurants — they are not fund individuals. We all know what they require. If you go out of 20 credit arrangements to you personally, you receive numerous efficiencies. Your life will be simpler, and you will save money, too.

2. Banking Benefits

Out Of Bob McQuillan, VP of franchise growth, Hand & Stone Massage and Facial Spa

Hand & Stone functions over 400 spas in North America. As the company has evolved, its own lending and banking needs have, also. The franchise-focused ApplePie Capital has supplied it with…

A. Personalized support.

“They move beyond your conventional creditor,” McQuillan states. “We really have our very own portal built within ApplePie’s site, so we are able to monitor all our firm’s deals — not just when a franchisee opens a first place, but as they develop for their third and second, also.”

B. Franchisee outreach.

Hand & Stone’s franchisees operate right with ApplePie, which helps the franchise together with outreach. “They present at our discovery day meetings, in which prospective franchisees come to find out about the business,” McQuillan states.

C. Growth preparation.

As Hand & Stone has enlarged from massages to skincare and waxing, shop sizes have risen considerably. “Existing franchisees have obtained over the area next door, sometimes,” he states. “As a creditor, ApplePie has assisted us through these changes.”

3. Unusual Success

By Josh York, founder and CEO, GymGuyz

What he anticipated: The creator of this 11-year-old physical fitness brand has had excellent goals from day one:”We are going to be the most significant fitness brand on earth.” In coping with Capital One and Webster Bank, he desired partners who may help him plan to get a significant future.

What he obtained :York was amazed how lender service went past amounts. “We have completed workouts at the banks, after hours,” he states. “Relationships are really significant. If I would not have someone over for dinner, I still will not work together.”