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