Look on any franchise chain’s website. It seems that almost every chain offers some incentive for you to buy and become a franchisee. But how do you know if that franchise you’ve been looking at is serious about growth? GbBIS takes a look.
The message is clear: “now is a great time to buy a franchise!” At least that’s what you would believe if you read the websites of any big franchise chain in America. They all have the same talking points: open franchise territories, recruiting opportunities, aggressive growth. But how do you know if a franchise is really serious about growth? It’s all about financing.
Pre-2008, it was easy for potential franchisees to acquire financing. High equity on homes and bank loans helped fund thousands of new restaurant and retail stores. Things aren’t so easy now. Home equity has plummeted and bank loans for franchisees are much harder to come by. Many franchises are showing that they are serious about growth by helping line up financing for new business owners.
Franchises understand that without new franchisees and new territories, their chains can’t grow. Securing financing for new business owners is a surefire way of showing their commitment to growth.
Hurricane Grill & Wings obtained $10 million in credit for its new owners from Mount Pleasant Capital. The funding, which will finance up to 75 percent of new-unit costs, will help take the chain to 50 units by year-end.
Denny’s has been driving growth this year thanks to a $100 million loan program through Pinnacle Commercial Capital the chain lined up at the end of 2011.
If you are a franchise owner, and you’re serious about growth, consider using high quality data to help you manage and grow your franchise. GbBIS offers Franchise Territory Management, an interactive web application that helps you manage the impact of geography, locations, and demographics on your franchise.
If your franchise is serious about growth, contact GbBIS. Our data, maps, and web applications can help you improve your franchise