Overcoming the Challenges of Securing Financing
Growing a vibrant and successful multi-unit operation has its share of challenges. There are operations and labor expenses, personnel and training issues, and, of course, financing. When multi-unit franchisees get ready to grow and expand they often need additional sources of financing. But gaining access to capital can be complicated and difficult. There are do’s and don’ts for positioning the business so that lenders will be willing to do business.
This will be the focus of a breakout session at this year’s Multi-Unit Franchising Conference held April 3-6 at Caesars Palace in Las Vegas.
The session is titled “Sourcing Funding for Up to $10 Million.” It will cover how franchisees can better prepare and position their operations most favorably with lenders, clarify the state of lending today, and provide guidance for securing loans in this range from a variety of sources.
Panelist Ron Feldman, CDO at ApplePie Capital, told Multi-Unit Franchisee magazine earlier this year that franchisees need to make sure they have a loan application package that is accurate, complete, and that they fully understand it. That’s because, he said, business plans and projections will be reviewed in detail, and franchisees must be able to defend them to a bank underwriter. He said franchisees can expect to be given a complete financial physical and may be asked to pledge personal assets as collateral. “Those are the rules,” Feldman said, “and cannot be waived by individual lenders.”
The speakers for this session will be Robert Middleton, franchisee of Jersey Mike’s Subs, Little Caesars Pizza, Sonic Drive-Ins, and Del Taco; Ron Feldman, CDO at ApplePie Capital; Tony DiGiuseppe, franchisee of The Joint Chiropractic; Tray Doster, franchise sales director for Zaxby's; and Kent Asaki, franchisee of Rachel's Kitchen
For more information about the conference, or to register, visit www.multiunitfranchisingconference.com.
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