Canada Franchise Lenders Fuel Great Clips' Franchising Growth
North America's number one haircare salon brand turns to proven non-traditional funding sources for franchise growth.
January 22, 2009 // Franchising.com // Minneapolis, MN - Rob Goggins, vice president of franchise development for www.greatclipsfranchise.com, announced a partnership with Canadian lenders Investec Solutions and LiftCapital Corporation to accelerate franchise expansion throughout Alberta, BC and Ontario.
"With many lenders becoming more conservative we decided it was time to be proactive in partnering with creative and assertive Canadian lenders who can offer secure capital options to our prospective franchisees and franchise owners," says Goggins. "Investec and LiftCapital are perfect partners for our expansion efforts that are well under way."
http://www.investec.ca, headquartered in South Surrey, south of Vancouver, was founded five years ago by entrepreneur, Gord Bylo, who created the i-Finance Program to enable investors to borrow the full value of their RRSP, locked-in pension, or locked-in retirement account (LIRA), while simultaneously preserving their capital and actually helping it grow.
"We show franchisees how to be their own banker without being bound by a bank's rules, and to earn some long-term gain, which is totally sheltered," says Bylo. "Franchisees like the fact that their loan will not affect their credit rating, and that the interest rate is fixed for up to 10 years."
"When using Investec's funding solution prospective franchisees won't have to worry about putting up their homes as collateral," says Goggins. "The i-finance Program also has a built-in advantage: The loans are exempt from pre-payment penalties.
LiftCapital, headquartered in Toronto, is a Canadian owned and operated commercial finance and leasing company. "The founders of the company were executives with several of the largest leasing companies in Canada, so we have the expertise and know-how to support franchisees," says Mike Cole, http://liftcapital.ca, national accounts manager.
"Our program allows Great Clips franchisees to grow from one salon to several while conserving capital during their development process," says Cole.
"We're creating a partnership with Great Clips franchise owners to get them started and to help them grow. So in five years when they're looking for financing to upgrade their computer system or signage, we have the resources to support them.
"We're thrilled to be working with Great Clips. We see them as a leader in the franchise community, and we're excited to be involved in their growth across Canada."
"There's no question that our system can benefit from the resources available from these two established Canadian lending organizations," says Goggins. "Our existing franchisees will have access to new, creative sources of capital and our prospective franchisees will quickly understand that our recession-resistant business model attracts high-quality lenders willing to assist them in their salon build-out, grand opening and future growth."
Great Clips is North America's largest haircare brand with more than 2,700 salons conveniently located in high-visibility strip malls in nearly 140 markets. Great Clips employs almost 30,000 stylists who are trained at 65 centers throughout the system. Great Clips consistently ranks among Entrepreneur magazine's Franchise 500®. Entrepreneur also ranks Great Clips one of their Fastest Growing, and one of America's Top Global Franchises for 2009.