Elcano Franchise Fund 1
For most Franchisors the greatest impediment to continued expansion is the ability to find suitable Franchisee Operators . That combination of entrepreneurial spirit, plus intelligence, stability, a willingness to follow a tested business model and the resolve to assess and deal with small business risk is a rare commodity.
No doubt for most franchisors after spending time and money seeking franchisees it must be dispiriting and a financial drain when an applicant meets all personal assessment criteria but when it comes to having or getting the money to establish their franchise the deal often comes unstuck.
All too frequently this is because when the applicant goes to their bank it requires Small Business lending to be secured by their residential mortgage, but at lower loan-to-value ratios than to buy that property, and then the bank will only offer 60% of the franchise establishment cost.
What is needed is genuine cashflow lending on the strength of the Franchise business.
The following lists what each stakeholder seeks, and gets, under the Fund’s solution:
Please Note: The following information for the Elcano Franchise Fund 1 represents broad details of the structure of the fund. These details may vary for each unit class offering of the Fund. Due diligence should be undertaken before majking an investment into the Elcano Franchise Fund 1.
1. Recruitment of franchisees was identified by 77% of franchisors as a significant challenge, making it the largest challenge for franchisors (Asia-Pacific Centre for Franchising Excellence 2013, Franchising Australia 2012, Franchise Council of Australia)
2. Asia-Pacific Centre for Franchising Excellence 2013, Franchising Australia 2012, Franchise Council of Australia
Back To Top