Multi-Unit Franchisee Magazine Issue III, 2011 | Page 54

Capital Ideas
chisees, he says, were used to financing 80 to 90 percent. Today,
he says, it’s 55 to 70 percent, and franchisees either don’t have
the cash or don’t want to put up their house.
On the bankers’ side, says Edwards, “We take a very serious approach to our fiduciary responsibility to the borrower.
We need to ensure they are capable of repaying their debt. A
single bad loan is an event for us and can be a financial disaster for the individual.”
“Franchisees really need to dig deep and do their due diligence on unit economics,” says Feldman. “Unit economics will
determine if you get the money.”
Ask a banker!

Still in doubt about what to do ne