Franchise Financing

Dream + Hard Work + Money = Success
You Provide the Dream & the Hard Work. We Obtain the Money.

Plymouth Rock Capital has created a specialty financing program designed exclusively for franchisees. Our investment banking arm provides an alternative to traditional cash based collateral lending.

FranBank Acquisition and Expansion Financing for Franchisees

Qualified candidates are offered capital finance for their franchise acquisition or expansion requirements, at or below conventional loan rates. Closings can occur within 45-60 days, or less on an expedited basis.

The benefit of the program is, through our detailed modeling, our ability to collateralize the cash flow of your existing and that of the target business. This generally allows for much lower cash collateral than would otherwise be required - something that expanding businesses find very attractive.

Highlights
  • Direct lender relationships
  • Term Sheet and commitment available within 14 days
  • Target loans are at commercial rates and generally do not exceed 8% (oftentimes lower depending on the individual applicant)
  • Strength of our Investment Bank procuring the loan
  • Strong emphasis on Franchisee track record, de-emphasizing personal collateral where possible
  • Loan sizes from $300,000 to $3 million, most often in the $1 -2 million range
Other Advantages
  • All out of pocket fees are generally credited against your equity contribution
  • The vast majority of fees are payable at closing and waived in the event that no financing event occurs
  • We strive to roll all or substantially all of the fees into your franchise loan so that you receive full credit at closing – we understand the need to lessen the strain on your cash flow
  • Loans are generally amortized over 10 years, longer for real estate based transactions

What Transactions Qualify?

>> Acquisition financing for single-unit, multi-unit & regional / area developments
>> Funding for candidates seeking additional unit(s)
>> Working capital and partner buy-outs
>> Financing for equipment and leasehold improvements

Why Plymouth Rock Capital?

SPEED: We usually offer an initial indication of approval in days, not weeks or months.

SIMPLICITY: Our team of advisors will assist you through the underwriting maze making the loan placement process significantly less complex.

CUSTOMIZATION: Each individual is unique with their own reasons for expanding their franchise business. We design a loan package that best suits your needs.

Our typical clients are those who are:

  • (a) Refinancing debt for existing units, often multiples, while seeking expansion capital for the acquisition of additional units; or
  • (b) Those seeking expansion capital for multiple units or aggressive area development.
In either case, loans generally are in the $1 - 3 million range but can be higher where warranted.
“Owning a franchise allows you to go into business for yourself, but not by yourself.”
Matt Haller, Director of Communications for the IFA

According to the IFA, franchise businesses will continue to grow at a faster rate than other businesses in terms of job creation, new business formation, economic output and GDP contribution. For 2013 alone:
  • The number of franchise establishments in the United States will increase by 1.3 percent, from 747,359 to 757,438 (an increase of 10,079)
  • The number of jobs in franchise establishments will increase 1.9 percent, from 8.101 million to 8.257 million (an increase of 156,000)
  • The output of franchise establishments in nominal dollars will increase 4.2 percent, from $769 billion to $802 billion (an increase of $33 billion)
  • The gross domestic product (GDP) of the franchise sector is projected to increase 4.0 percent, from $454 billion to $472 billion (an increase of $18 billion)
  • Business Services and Commercial & Residential Services will rank as the top two sectors in both franchise employment growth and growth of the number of establishments
  • Quick Service Restaurants – the largest franchise business line – will rank second in the growth of output and will see growth rates of employment and new businesses that are higher than the franchise sector average