Funding for your new domestic and international Franchisees
KEG Trade World Ltd has entered representation agreements for Franchise Brokerage and expansion into Mexico, Panama and other global markets.
This business development provides for an established franchise, a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.
A first and foremost idea for new potential franchisees is to figure out how they will be funding their business venture as early in the process. Some funding options take time and no one wants to miss out on an opportunity. One of the most important aspects of opening a franchise is funding.
In the case of established franchises in one country, ie the United States, a franchise such as California Pizza Kitchen, a Sir Speedy Printing, Dickey's Barbecue Pit, Meineke, etc, may well have over 800 stores or more in their home country. There is provisional income in franchise operations which can be a consideration for restructuring or reapportionment to aggregate a collective "Franchise Build Out Fund" which would be provided as incentive to new franchises in New territories.
A first franchise is established to a master rights franchisee, with granted rights of the country or territory in recruiting new franchisees in the assigned region.
A prospect may well need advance franchise fees ie smaller sums such as $50,000 for smaller solepreneur or home based operations, more often in the $350,000 usd range, and larger concerns at $3 to $5 million usd. Then each model plan of franchise operations remits a royalty ongoing for life of the agreement plus organized monetization refurbishment.
In many cases, the Franchise Broker earns a respectable portion of the franchise fee. KEG has incentive then as a match maker for a Franchisor's franchisee recruitment, as well as providing provisional funding loans that can be offered to the new onboarding prospects.
In order to accomplish building the new franchisee location, a prospective new operator needs
* Construction loan funding to do build out
* Operating expenses at presumed first 18 months tops to carry through until right side up as profitable operation, as turnkey
* Royalties coverage from start up.
Since we are only working with established brands with reasonable stores ie 300 plus, funding through our secure exchange is anchored by the following:
* There is the IP of the established franchise brand
* There is provisional income of the current franchise stores operations which can be used as leverage for a securitized Trust and Bond fund.
* There is the anchor real estate notes associated with the collective franchise stores whether operator owned or collectively Co oped for title secured funding.
In creating a newly structured Trust oriented and Bond issued fund, restructuring the provisional income and notes, there is made an available Franchise T&B expansion and construction fund. When the funds are made to the expanding new franchisees as loans, the benefit goal is to offer better or lower interest rates than the current interest rates as a discounted cost for construction, advance fees or operations to carry than those loans offered by non involved or non interested banks.
The Franchise owner in the main country, maintains a keen interest to know that he/she can offer new franchisee loan programs to new prospects in New territories that become profitable for the build, expansion then convert from scheduled loan payoff to royalty stream and profit share.
* Real estate
* Provisional retail income
* loan interest income at a better rate than banks.
* a common ground offer for the brand's community of operators and provision of quickly needed funding.
* offset by all of the above against the restructured solution for expansion fund available offered solely by the main Franchisor.
If this is an area of interest for your domestic Headquarters offices, we invite the conversation with your CFO, CPA and your marketing development team, as an interest for need as a doable target in 2023- 2024.