Deal-Teaming Process Accelerates Acquisition and Development Line of Credit
SCOTTSDALE, Ariz. & DENVER--(BUSINESS WIRE)--In business, time is money and expediency is a valued commodity. It is especially so in the quick-service restaurant sector. CKE brand (Carl's Jr. and Hardee's) franchisee Biscuits and Burgers, LLC, worked quickly with GE Capital Solutions, Franchise Finance to secure funds to acquire real estate in the Atlanta area. The lender financed $8.5 million for Biscuits and Burgers, completing the transaction in just 45 days using a unique process called deal teaming.
The financing includes $6.5 million for the acquisition of 19 Hardee's locations in the Atlanta area, as well as a $2 million development line of credit.
"Biscuits and Burgers came to us looking for a financial solution and cycle time was critical as CKE was moving quickly to complete adjacent deals of its own," says Karen Hamilton, vice president, GE Capital Solutions, Franchise Finance.
To accelerate the process, GE Capital Solutions, Franchise Finance employed a tactic called deal-teaming where underwriting and closing occur simultaneously. It is a unique method of completing the transaction.
"Cycle time for a multi-unit real estate transaction varies, depending on number of locations," says Hamilton. "This is a shining example of how deal-teaming can work because we were able to close in less than 45 days."
Denver-based Biscuits and Burgers, whose principals are longtime CKE franchisees, is a new entity, formed to acquire Hardee's locations in the Atlanta area. Its owners, Steve Rosenfield and Dewey Brown, are experienced proprietors of the Carl's Jr. brand and own Hardee's stores in Montana and Wyoming.
"Customer service is so important in our industry, and GE Capital Solutions, Franchise Finance impressed us with the swiftness of this deal," says Rosenfield who is president of Biscuits and Burgers. "They have proven their knowledge of the restaurant industry time and time again in the more than five years we have worked with them."
GE Capital Solutions, Franchise Finance is a leading lender serving customers in the restaurant, hospitality, branded beverage, automotive after-market, and power sports industries. It provides financing to help franchisees and franchisors grow, compete, and prosper.
It also offers access to capital for purchasing real estate or equipment, new construction or remodels, acquisitions, or refinancing.
About GE Capital Solutions, Franchise Finance
GE Capital Solutions, Franchise Finance is a leading lender for the franchise finance market via direct sales and portfolio acquisition. With more than 30 years of experience and $14 billion in served assets, we serve more than 6,000 customers and more than 20,000 property locations, primarily in the restaurant, hospitality, branded beverage, power sports, and automotive after-market industries. We offer customers access to capital with a menu of products featuring flexible structuring, including financing for acquisitions, refinancing, construction of new units, and remodels for single- and multi-unit operators/chains.
GE (NYSE: GE) is Imagination at Work — a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide.
Hardee's is an American fast-food restaurant chain, located primarily on the Eastern half of the United States in Midwest, Southeast and East Coast regions.