What-Franchise-Issue-20.1

17% OF FRANCHISEES ARE IN FOOD AND BEVERAGE FRANCHISE SECTOR 30% OF SMES HAVE USED ALTERNATIVE FINANCE, SUCHAS CROWDFUNDING, AND PEER-TO-PEER LOANS “Four-in- five small and medium sized businesses report profitability in the first year of operation” Easystorage INVESTMENT: £500,000 The storage franchise revolves around easyContainers which cost £2,200 each. As a result, the brand rents the containers to franchisees for £1.22 per day (in batches of ten containers) as they launch. It also has partnerships with banks including HSBC, which has helped secure support and funding for many of its franchisees. Well Polished INVESTMENT: £9,995+VAT The cleaning franchise allows you to pay the deposit only, paying the remaining fees over a 24 month period. It also has a good relationship with UK start up loans, which has funded more than 20 of its franchisees. Its partnership with an independent finance broker also means you can access funding advice. Loading INVESTMENT: £50,000+ The bar franchise, which is a new arrival to the industry, is scrapping the premium fee and royalties fee for its beta testers in franchisee’s first year of operation. It will also help you in securing a commercial lease by offering flexible payment options on legal and deposit expenses. Puddle Ducks INVESTMENT: £24,000+VAT The swim school franchise has established partnerships with multiple credible lenders, including Natwest, Lloyds, Barclays, Empire Global Finance, and Novuna. As a result, franchisees often receive a loan to cover 70% of their franchise fees. The brand says it has also channelled its knowledge into guiding franchisees through funding applications. Support Solutions INVESTMENT: £60,000 The care franchise partners with a broker to secure a government-backed start up loan which covers 100% of the franchise fee (£25,000+VAT). The brand will also work closely with you and the broker to develop a financial forecast that is tailored to your level of investment and what you’re trying to achieve. Musical Moments INVESTMENT: £4,999 The music franchise, which operates in care homes, has a staggered payment plan. This means you pay the initial deposit of £1,500 when you sign the franchise agreement. The remaining amount is then paid in monthly instalments of £194 over the course of 18 months. This arrangement is interest-free. BANK LOANS IN THE UK Most highstreet banks have specialist franchise devisions. They work alongside franchisors to understand the brand in advance, Banks that offer this specialised service include Lloyds Bank, HSBC, Barclays, Natwest, Royal Bank of Scotland. MULTIPLE OPTIONS A lot of franchises offer funding support, and some may offer additional help on a case-by- case basis. It’s worth talking to your chosen franchise about funding early on. 26 WHAT FRANCHISE Issue 20.1 50 Funding Pl ans | PARTNER CONTENT