Fanchisor Case Study

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Your franchisor. To keep their growth from stalling, many franchisors are offering unprecedented levels of franchisee assistance (see "Turn to Your Franchisor"). Some are making loans themselves, while others are discounting franchise fees or letting new franchisees pay their fees over time. "Franchisors are offering incredible deals," says business-acquisition specialist Ted Leverette of Partner On-Call Network in Florida. "Some are waiving fees completely. Choose a franchisor who 's willing to share the risk with you." At the very least, your franchisor should help you beef up your loan paperwork. For instance, some franchisors are purchasing bank credit reports on their company from FranData, which explain franchisor financials and present the concept in a positive light. Get a UBLOC. The acronym stands…show more content…
The company 's venture fund has $5 million raised privately, and Farid hopes to grow it to $10 million. So far, Edible 's leasing program is available only to Edible franchisees, who can get up to $100,000 to cover equipment costs. But Farid Capital Corp. may eventually broaden to offer financing to the franchising industry in general, Farid says. Other chains, including Florida-based CruiseOne, are offering straightforward loans to cover startup costs. Senior vice president and general manager Dwain Wall says his travel company began offering new franchisees financing for $7,300 of their $9,800 franchise fee in August. Because CruiseOne uses a home-based business model, the fee usually constitutes most of the startup cost. The loan carries an interest rate of prime plus 6 percent--not exactly cheap, but moderate in today 's lending climate. With more than 500 locations and plans to open up to 100 more in the next 12 months, Wall says it 's important to help CruiseOne franchisees get started to keep growth on

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