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Finance

Access to capital is the lifeblood of franchise growth. Restricted lending policies of the past few years continue to be a challenge for franchisees, who need access to capital, whether to survive or expand. Lenders today are searching for solid franchisee organizations to do business with, but what exactly are they looking for? Learn what bankers, franchise lenders, private equity firms, and other capital sources want to see in a borrower - and make sure you are managing your organization in ways that make you attractive to lenders.

Learn more about the franchise finance and capital marketplace, and what factors are affecting your chances to borrow the capital you need to grow.

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Fair Wage War: IFA Takes Its Minimum Wage Battle To Chicago »

Multi-Unit Franchisee

Fast on the heels of its recent legal challenge to a new minimum wage law passed in Seattle, the International Franchise Association (IFA) has now set its sights on the city of Chicago.
Steve Caldeira, president and CEO of the IFA, wrote a letter to the Chicago City Council and Mayor Rahm Emanuel last week urging them to remove a provision in a bill to raise the minimum wage that would discriminate against franchisees.
Caldeira and the IFA have been clear in their assertion that franchisees are locally owned, small businesses and not large, national businesses as the legislation suggests. Giving non-franchise small businesses extra time to increase their wages, but forcing franchisees to raise their wages along with large companies is unfair and unconstitutional, says Caldeira...

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Hunting For Funding: How Alternative Lending Can Boost Your Business »

By David Goldin

If you've had issues financing your franchise, you're not alone. Like any business owner, you need money to take care of everyday costs like paying property taxes, meeting payroll, or purchasing inventory and equipment. But what happens when you walk into a bank and are denied funding because of a low credit score or insufficient collateral?
This is a problem all too common for business owners these days. Following the recession of 2008-2010, government regulations forced banks and other lenders to significantly tighten their requirements. These restrictions effectively shut out many businesses from acquiring funding.
So what can franchisees do to receive the funding they want? The answer lies within alternative lending.
Since the financial crisis, alternative lending companies have begun to take the place of more traditional lending options...

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Emotional Investing: Keeping Your Emotions From Dictating Your Financial Future »

Multi-Unit Franchisee

You've probably heard of emotional eating, but financial advisor Matthew T. Shafer says emotional investing is a problem that needs to be recognized society-wide, especially since the economy has been in such sharp focus this past half decade.
"The words of an experienced mentor have proven to be spot on throughout my career; he said that no matter how smart they are, most people don't know what to do with their money," says Shafer, named one of the top 1,000 financial advisors in the U.S. by Barron's Magazine.
"It wasn't that people were ignorant, and it wasn't that they were incapable of analyzing investment opportunities. The challenge occurred when emotion clouded their judgment."
People become too optimistic and enthusiastic when their investments are on the rise, and too fearful and skeptical when they see a decline, he says...

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The Profit Mastery Road Map: Improve Your Profitability And Cash Flow »

By Steve LeFever

Mysteries are solved when we use clues to find the culprits behind the crime. Financially speaking, when the crime results in the untimely demise of a business, we often see three usual suspects: low cash, low gross margin, and low net margin.
But low cash and low margins are caused by something. The diagram presents a big picture overview, but also can lead us through a clue-by-clue, cause-and-effect deductive analysis designed to pinpoint potential financial culprits. When combined with industry benchmarks, this diagram can become your personal roadmap to success.
First, how to read it. Between any two boxes, in the direction of the arrows, insert the word "causes." In other words, "low cash" causes "high borrowing." Now, if you work against the arrows, include the words "is caused by" between the two boxes...

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Retirement Advice: Expert And Software Creator Shares Tips For Calculating Retirement Withdrawal »

Multi-Unit Franchisee

"Who has my back in retirement?" That's the question pre-retirees and retirees want answered when it's all said and done, says veteran financial planner David Zolt.
Baby boomers have been retiring in droves in recent years, and will continue to do so throughout the next decade - 10,000 of them a day, the Pew Research Center estimates. Unfortunately, the average boomer is about $500,000 short on their savings, according to a recent survey by TD Ameritrade.
We have already entered an unprecedented moment in retirement history; never have so many people, with such variability in financial wealth, retired at once, says Zolt.
"Clients want to know when they can retire, how much they can withdraw from their savings, and how confident they can be that they won't outlive their money," says Zolt, who created retirement income planning software for financial advisors...

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Ratios Rule!: But Do You Know Which Financial Ratios To Watch? »

By Steve LeFever

In earlier articles, I have discussed your two key yardsticks of financial performance: the balance sheet and the income statement. Taken together, they represent as complete a financial picture of your company as it's possible to get.
Now, it's a common practice (and a sensible one) for businesses to have at least two sets of financial statements (or maybe three): one for the IRS (with the tax rules and regulations making net profit look as small as possible); one for your banker (adjusted to present the most glowing picture of the business); and one for yourself. But remember you can't fool all of the people all of the time. And the worst possible person to fool is yourself. You need clear, concise, decision-relevant information.
Incidentally, two or three sets of statements does not imply more two or more sets of books (the general journal and the general ledger, which report all financial events that occur in the business)...

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Your Own Worst Enemy?: 5 Ways We Sabotage Our Financial Affairs »

By Carol Schleif

Investing wisely does not come naturally to most of us.
Many of the skills that support ultimate financial management success run counter to how our natural wiring prompts us to behave. Sound long-term investment decisions often require the ability to make choices that differ from near-term "prevailing wisdom." But we are social creatures, most comfortable when we fit in.
We crave predictability, but the markets are unpredictable and random. We infer short-term "patterns" reinforced by what we just read online, but don't recognize long-term sea changes that evolve with subtle nuances. We love to share stories, but often find it challenging to grasp complex financial and mathematical relationships. And we are irresistibly drawn to what is happening in the here and now, often refusing to focus on what may or may not come to pass some time in the distant future...

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Retiring To Grow: Benetrends CEO On How Franchisees Can Finance Growth »

Multi-Unit Franchisee

Retiring To Grow: Benetrends CEO on How Franchisees can Finance Growth

It's not uncommon for entrepreneurs and business operators today to tap into their 401k or other retirement accounts to seed growth and expansion. This holds true in franchising as well. If you're a multi-unit franchisee considering how you might use your 401(k) to expand your operation you probably have questions.
We asked Rocco Fiorentino, CEO of Benetrends, to explain how the process works, the pros and cons, and legal implications. Benetrends has more than 25 years of franchise industry experience helping more than 10,000 entrepreneurs to fund their business over the last 30 years. Fiorentino shares the most common questions franchisees have asked about financing growth...


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2016 Mega 99    

Multi-Unit Franchisee Magazine

Issue I, 2016

Multi-Unit Buyers Guide    

2015 Multi-Unit Buyers Guide

Special Edition

Top Opportunities »

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