Franchise Update Magazine Issue II, 2017 - Page 71

the long term and provide loans that set them up for future success .

Thomas says the company relishes its place as “ the only online lender 100 percent focused on the franchise industry .” The company has signed 43 franchise partner brands , who collectively have an annual capital demand exceeding $ 1 billion . Franchisors like the “ relationship lender ” approach that supplies capital from multiple sources , eliminating the uncertainty of depending on a single-source lender , particularly in a down market .
ApplePie offers financing for both new and existing franchisees to open , expand , refinance , or acquire franchise businesses . The company also can help with equipment and remodels . “ Our ApplePie Core loans are optimized for franchisees looking to accelerate their growth , and our lending network provides a full host of SBA and conventional loan options ,” says Thomas . “ Overall , our financing options are flexible and can be optimized for whichever factor is most critical , including speed to money , short-term cash flows , or future growth .”
The credit marketplace in 2017 is dynamic . Thomas says one financing trend the company has noticed is recapitalization and refinance options . Many franchisees have equity locked up in existing units , or their existing debt has tied up all their personal collateral , inhibiting their growth . Through a recap , she says , franchisees can access liquidity by borrowing against their units and then use those funds for down payments on their next wave of locations .
They are also seeing signs of credit tightening and consolidation throughout the industry . The trend is based on larger economic

“ The only online lender 100 percent focused on the franchise industry .”

CASE STUDY

drivers and can ultimately lead to unpredictable access to capital . “ This is a risk to both franchisors and franchisees because when lender rules change , it can result in loan commitments being pulled with little or no warning ,” says Thomas . “ Our goal is to provide a more sustainable solution that is less affected by these external factors by having a diverse set of capital sources . With more sources , our loan availability becomes much more predictable throughout the credit cycle .” n

ApplePie to the Rescue

Keith Sirois has been a leader throughout his life . He

has served in the U . S . Navy and worked in the foodservice industry for 40 years . During that time he has managed restaurant operations large and small , including franchise systems with more than 800 restaurants . He has previously held management roles at brands including Checkers , Mrs . Fields Cookies , and Taco Bell . Today he is the CEO of Big Boy Restaurants .
As a franchise industry veteran , Sirois knows the value of working with quality brands . One such brand was Massage Green Spa , an innovative health and wellness luxury spa that features a price point for all budgets . He signed on with Massage Green to open three locations in Florida and was midway through his financing plan for the first location in Tampa when he met a member of the ApplePie team at a conference .
“ I had been working with another lender for about eight weeks , but it was not a pleasant experience ,” Sirois recalls . He says the lender did not thoroughly communicate its requirements at the beginning , which led to an extensive , drawn-out underwriting and documentation process .
“ After meeting with ApplePie , I decided to make the switch right away ,” says Sirois . “ Not only were ApplePie ’ s terms better , they understood the Massage Green Spa brand , were clear about what was required , and didn ’ t change the rules midway through the funding process .”
As Sirois continues to grow his franchise footprint , he plans to work with ApplePie as his strategic financial partner . “ It ’ s a big deal for a business owner to find a lender who is easy to deal with and I plan to stick with ApplePie .”
Franchiseupdate ISSUE II , 2017 69
the long term and provide loans that set them up for future success. Thomas says the company rel- ishes its place as “the only on- line lender 100 percent focused on the franchise industry.” The company has signed 43 franchise partner brands, who collectively have an annual capital demand exceeding $1 billion. Franchisors like the “relationship lender” ap- proach that supplies capital from multiple sources, eliminating the uncertainty of depending on a single-source lender, particularly in a down market. ApplePie offers financing for both new and existing franchi- sees to open, expand, refinance, or acquire franchise businesses. The company also can help with equipment and remodels. “Our ApplePie Core loans are optimized for franchisees looking to acceler- ate their growth, and our lending network provides a full host of SBA and conventional loan options,” says Thomas. “Overall, our financ- ing options are flexible and can be optimized for whichever factor is most critical, including speed to money, short-term cash flows, or future growth.” The credit marketplace in 2017 is dynamic. Thomas says one financ- ing trend the company has noticed is recapitalization and refinance options. Many franchisees have equity locked up in existing units, or their existing debt has tied up all their personal collateral, inhibit- ing their growth. Through a recap, she says, franchisees can access li- quidity by borrowing against their units and then use those funds for down payments on their next wave of locations. They are also seeing signs of credit tightening and consolida- tion throughout the industry. The trend is based on larger economic “The only online lender 100 percent focused on the franchise industry.” drivers and can ultimately lead to unpredictable access to capital. “This is a risk to both franchisors and franchisees because when lender rules change, it can result in loan commitments being pulled with little or no warning,” says Thomas. “Our goal is to provide a more sustainable solution that is less affected by these external factors by having a diverse set of capital sources. With more sources, our loan availability becomes much more predictable throughout the credit cycle.” n CASE STUDY K ApplePie to the Rescue eith Sirois has been a leader throughout h 2ƖfRP26W'fVBFRR2gBv&VBFRfBЧ6W'f6RGW7G'f"CV'2GW&rFBFRR0vVB&W7FW&BW&F2&vRB66VFpg&66R77FV2vF&RF&W7FW&G2R2&RЧfW6ǒVBvVVB&W2B'&G26VFr6V6W'2'2fVG26W2BF6&VFFR2FR4Tb&p&&W7FW&G22g&66RGW7G'fWFW&6&2w2FRfVRbv&ЦrvFVƗG'&G2R7V6'&Bv276vRw&VV7fFfRVFBvVW72WW'7FBfVGW&W2&6PBf"'VFvWG2R6vVBvF76vRw&VVFVF&VR6F2f&FBv2֖GvF&Vv2f6pf"FRf'7B6FFvVRWBV&W"bFPURFVB6fW&V6R( ĒB&VVv&rvFFW"VFW"f"&WBVvBvVV2'WBBv2BV6BWW&V6R( 6&2&V62R62FPVFW"FBBF&Vvǒ6V6FRG2&WV&VVG2BFP&Vvrv6VBFWFV6fRG&vWBVFW'w&Fr@F7VVFF&6W72( gFW"VWFrvFURFV6FVBFRFR7vF6&v@v( 626&2( BǒvW&RU^( 2FW&2&WGFW"FWVЦFW'7FBFR76vRw&VV7'&BvW&R6V"&WBv@v2&WV&VBBFF( B6vRFR'VW2֖GvF&VvFPgVFr&6W72( Ф26&26FVW2Fw&r2g&66RfG&BR2Fv&vFUR227G&FVv2f6'FW"( ėN( 2&rFVf"'W6W72vW"FfBVFW"v2V7FFVvF@F7F6vFUR( Рg&66WWFFR55TR#rc