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To properly underwrite a franchise loan, we must also consider the financial health of the franchisor. This is often done with a document available to lenders from the Franchise Registry known as a Bank Credit Report or BCR. Not all franchisors have created or submitted this document. Contact us to determine if such an analysis is available. If not we will ask you to obtain as much data as possible from the franchisor regarding their financial condition and similar store performance. This information should be as important to you in your selection as it is to the lender.
Someone else has already learned the pitfalls, traps and path to success and is willing to share these with you for a price. A franchise generally includes training, both classroom and at a live site and provides operating policies and procedures. Often, food franchises require you to purchase supplies and inventory directly from them or an authorized supplier and may require that you use their established product pricing and contribute to national advertising.
What a great way to launch a new business !!