It is important to understand that to assist minority candidates in searching and obtaining financing, there are similarities to doing the same for non-minority candidates on the surface as you peel away the components of the stages of securing the financing, there are differences to be noted and explained.
The process of obtaining financing within any franchise concept is similar in many ways to the traditional process of going to apply for a loan. Most franchisors will assist franchisees by providing them with a recommended list of lenders who are friendly with their individual concept. This is a key fact to be aware of because it will eliminate the familiarization process of the lender with the concept and hasten the process.
All lenders, before they extend financing, will need to understand the mechanical components of the franchise business. The franchisor will have what is considered an average performance financial statement and requirements that the franchisee can share with the lender that will assist in the familiarization process. Most franchisors have a package of information that is provided to new franchisees that can be obtained by asking even if theyâ€™re not a new franchisee, but just starting the process of obtaining financing.