Product Overview

ProductOverview


FRANdata FUNDING ACCREDITATION

Without financing in place, franchisors don’t have a franchisee. Without financing, franchisees don’t have a business.

That’s why FRANdata Accreditation can be of critical importance for franchise based businesses at every stage of their development. It provides banks and other sources of finance with credible information which they can use as the basis for their decision making process when considering a potential franchisee’s application for finance.

Accreditation therefore works in the interests of all parties: finance providers, franchisors and potential franchisees.

Once accredited, franchisors can also tap into FRANdata’s extensive franchise data warehouse to help shape their strategic decisions. FRANdata Accreditation can therefore play a critical role in the future of any franchise based business organisation.


Franchise Funding Accreditation is a 3-stage process:


STAGE 1: Registration
Registration on the Australian Franchise Registry™ is the first step in preparing yourself for funding accreditation.

To view The Franchise Registry™ and register your brand, please visit www.thefranchiseregistry.com.au or email [email protected] for further information.

STAGE 2: Franchise Funding Review
The next phase in the process provides key insights and information, tailored to the needs of emerging franchise brands that may not yet meet the requirements for a full Bank Credit Report in Phase 3. A typical business would be a growing concern with two to three years’ experience and around 30 franchisees in the marketplace.

The Franchise Funding Review covers critical aspects of your operation from a financier’s perspective, including:

  • Financial backing
  • Franchisee recruitment processes
  • Site selection
  • Training
  • Field support
  • Success rates
  • Secondary market observations.

The ability to provide finance providers with this in-depth information will make it easier for them to assess the viability of an application which could be vital for your growth strategy.

STAGE 3: Bank Credit Report
FRANdata’s Bank Credit Reports have become the industry standard for franchise financing and are generally tailored to the needs of franchisors with five years successful growth and 50 or more franchisees in operation.

The Report covers all points covered in the Franchise Funding Report and further investigates other key drivers including:

  • Unit economics and KPI performance
  • Peer review
  • Secondary market insights
  • Franchisee satisfaction
  • Subsequent investment/capex history and requirements
  • EWS triggers and remedies
  • Management history and performance.

Creating a Bank Credit Report for franchisors follows a well-defined process. We gather information about your business and produce the draft Bank Credit Report. You then have the opportunity to review and provide management comments to address risks identified. We then finalise the Bank Credit Report and a validation letter is issued.

Importantly, you control the report’s distribution. It is only provided to lenders who sign non-disclosure agreements, and not to franchisees. With your approval, we can distribute the report to requesting lenders via our small business lender network.

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Other Products

Custom Research and Surveys

FRANdata can undertake custom research projects on the sector and specific industries, including the surveying of franchisees, suppliers and customers.

Projects

FRANdata can also draw on its extensive industry experience and act in a consultancy basis to help take your business to the next level. For example, we are experienced in developing standards to evidence the achievement of Best Practice for franchise brands. Please contact us for a confidential discussion about any project you may be considering.

Franchise System Accreditation

The definitive standard for brands prepared to undertake an initial and ongoing quality assurance program.