FRANCHISE FINANCE

Franchise Finance involves financing of a new or the acquisition of existing franchises for SMME’s within KZN.

Franchise Requirements:

Client needs to speak to franchisor first
Needs to find out the own contribution required from the franchisor’s side – this is usually an encumbered amount meaning it cannot be borrowed
Client must be approved by franchisor as a franchisee
If it is a new franchise, the franchisor must do a feasibility study of the location to be opened in

Basic information required for a franchise:

Comprehensive business plan / Business Profile
Cash flow projections for 5 years, including income statement and balance sheet (first year reflected monthly)
List of equipment to be financed and a breakdown of the utilization of the finance (2 quotations to be provided, indicate preferred)
Proof of own contribution (if applicable)
Copy of signed franchise agreement
Feasibility study by franchisor
Approval as a franchisee
CVs on all members/shareholders/directors/key stafft
Signed Personal Statement of assets and liabilities for all members/shareholders/directors