How To Get And Finance A Franchise Buy In Canada

17 Apr

0
0
0
0
0
0
0
0
0
or copy the link

The selection to each get a franchise opportunity and then finance a franchise buy are of program intertwined. Is picking the appropriate franchise more critical than financing the new organization venture? – we’re not positive – possibly equally as crucial – but let’s appear at some solid ideas and information on franchise financing in Canada, how it works, and how that decision or choose you just made can be translated into a productive entrepreneurial career.

There is a entire industry identified as ‘ franchise consultants ‘ that have the capabilities and capacity to support you assess which kind of organization very best suits oneself. If you talk to these folks it often comes down to matching your fundamental character to your organization strengths and interests. Your capability to match those against a solid enterprise opportunity in the franchise sector will ultimately be your success.

We’re the 1st ones to agree that when you pick a franchise that matches your abilities and overall financial capacity your possibilities of profit and success tremendously enhance.

So, you have made you finance choice, now how do you get and finance a franchise acquire. In Canada there is one major plan our clientele use to qualify for franchise financing – it is a loan plan referred to as the CSBF / BIL plan, which is the way in which the majority of franchises are financed in Canada. Utilizing this plan correctly will manual you ultimately to a properly financed company that need to allow you to meet your personal and enterprise targets.

Your capacity to get a franchise purchase closed effectively calls for you meet the specifications of your franchisor, i.e. your new organization partner so to speak, as properly as the lender. You need to comprehend your initial expenses, which are often a mixture of soft expenses and tough charges. In our expertise you will have higher challenge financing the soft costs they contain the franchise fee, and other misc things that are not tangible assets.

The BIL/CSBF program we mentioned covers assets such as fixtures, gear and also leaseholds. Your capacity to finance leaseholds beneath a franchise loan is really important, as these items are normally not in a position to be financed underneath standard implies.

Cash. Yours and the lenders. By that we are referring to your potential to place a affordable down payment, or what the lender calls ‘ equity ‘ into your transaction. And, you happen to be appropriate. We already know your subsequent concerns, simply because it is been asked a thousand times: ‘ How much do I have to put into the company to get and finance a franchise buy effectively ‘. Answer: It depends, but a typical franchise investment need to be in the 30 -40% per cent range to let you to have the proper combination of both debt ( i.e. borrowed funds) and equity – which is your cushion that makes it possible for you to keep proper leverage around how much debt the enterprise can handle.

One particular error several new franchisees make is that they finance the business from an opening buy point of view, and aren’t focusing on ongoing functioning capital needs, which is in our opinion just as critical.

In summary, use you personal skills or that of a consultant to match your strengths and expertise and personality to a franchise that will perform for your from a personal and financial target viewpoint. Speak to an knowledgeable, credible and successful Canadian business financing advisor on how to finest structure the finances around your obtain. Use the BIL/CSBF plan to the optimum that you can, as it provides solid terms, minimal guarantees, and wonderful prices and flexibility.

P.S. Keep us posted and congratulations on your new role as enterprise owner and entrepreneur.

33 Responses to “How To Get And Finance A Franchise Buy In Canada”

  1. Kip January 7, 2013 at 6:29 pm #

    Do small market teams such as the Bills stand an opportunity within the high finance realm of the National football league? The Cowboys are charging $50k for the best to purchase mid-area season tickets? Just how can teams such as the Bills survive? Whenever they?

  2. Adrian February 16, 2013 at 5:17 am #

    I’ve been looking into franchising as an option, but most require that you have a certain amount in liquid assets on hand. With all of the cost associated with franchising ex. Start Up Costs, Royalty Fees, etc. How can franchising be profitable at all??

  3. Tena February 18, 2013 at 7:11 am #

    http://www.cbc.ca/sports/hockey/story/2008/05/30/boots-investigation.html
    http://www.mercurynews.com/delbiaggio/ci_11139232

    Feds charge former Sharks co-owner with Del Biaggio, faces up to 25 years in prison if convicted.

    “Federal authorities filed civil and criminal charges Thursday against bankrupt Silicon Valley financier William “Boots” Del Biaggio III, alleging he bilked banks and private investors in a series of schemes that raised tens of millions to pay off gambling debts, buy a stake in a Nashville pro hockey team and finance a lavish lifestyle for himself and his family.

    Del Biaggio personally obtained more than $65 million, according to the Securities and Exchange Commission, which said he “used his clients’ money as his personal checkbook” — to buy the team, pay home mortgage and decorating expenses on luxury homes, “substantial” gambling debts, credit card bills and “other personal and unrelated business expenses.”

    He also used phony collateral to obtain an additional $54.9 million in loan guarantees, according to a criminal complaint filed Thursday in U.S. District Court. Most of that amount appears related to his investment in the Nashville Predators hockey franchise.”

    Could the Preds be heading up to Canada after all?
    Could Gary Bettman be tied to this?
    Thoughts?

    Just asking!!!
    Kate

    I’m not sure either! While reading the CBC article I saw this and figured to ask if Bettman could be related:

    “Balsillie, through his lawyer, accused NHL commissioner Gary Bettman of sabotaging his bid and forcing Leipold to sell to the local group and Del Biaggio. Bettman denied this.”

  4. Pamala February 19, 2013 at 8:28 am #

    I’m looking to purchase a Tim Hortons franchise in Vancouver, BC, Canada. I have $300,000 but I still need about $200,000 to meet Tim Hortons requirements (up to $480,000 not including tax). I was hoping to get a loan from the Canadian Small Business Finance Program to support me. Is this possible? Will it be enough? Thanks!!!
    Franchising Program

    Franchise Cost: $430,000 to $480,000* plus all applicable taxes (this includes a drive-thru)

    Additional Working Capital: (start-up costs) $50,000 (unencumbered)

    At least $144,000 of the franchise cost must be unencumbered (cash or liquid assets) in addition to the $50,000 working capital which must also be unencumbered. The remaining amount may be financed through various lending programs offered by the chartered banks, providing, of course, the candidate meets the normal borrowing requirements.

    The specific cost of a Tim Hortons license will depend upon the Tim Hortons building size and the required furnishings and equipment to be installed. The cost of a Tim Hortons license may exceed $480,000 in certain locations due to higher development costs.

    Included in the cost of a franchise is the following:

    all equipment, furniture, display equipment and signage
    8 week training program in the Oakville, ON, Training Centre
    a store opening crew to assist the openi
    a store opening crew to assist the opening of the Tim Hortons store (for a maximum period of 2 weeks)
    the use of all Tim Hortons Manuals
    right to use trademarks and trade names
    support from Head Office personnel who have vast knowledge in the food service business.
    Not included in the cost of the franchise:

    The building
    The property on which the restaurant is built
    The term of the License agreement is usually 10 years and usually with options to renew for up to a further period of 10 years.
    The Real Estate and Development Department approves and secures all locations upon which Tim Hortons stores are built, whether they are leased or purchased. Therefore, an applicant is not expected to bring forward a site and/or concern themselves with the development of such. Once the site is secured, the Construction department begins the process of building the store.

    * Subject to change without notice.

  5. Angela February 19, 2013 at 9:06 am #

    Why does marketing potential in terms of area population have to be so important? What if they don’t care about hockey?

  6. Hana February 20, 2013 at 6:13 am #

    Other than radioshack, what consumer electronics stores offer franchise opportunities in the states?

  7. Marhta February 20, 2013 at 12:29 pm #

    I was reading an Intresting post on espn talking about the nhl’s problems. One point of blame was that the league’s gotten too big and it’s diluting the talent and also the too many non-traditional hockey markets.

    It suggested folding 6 teams and moving 6 others to Canada creating 12team conferences for USA and Canada. Well I can’t see how the 2nd idea would work (The NHL’s top 12 USA Hockey markets: Colorado, Chicago, Boston, Detroit, Minnesota, NY (Both teams), Pittsburgh, Philly, Washington, Buffalo, and maybe St Louis). However I know certain markets (LA, Dallas, San Jose, Anaheim) aren’t traditional but haven’t been horrible

    However the contraction idea may make sense. Consider if the league contracted 6teams (Phoenix, Florida, Tampa, Atlanta, Nashville and Carolina). Then pretend that the league did a draft for the team’s players (Order from last years draft). Look how much better certain teams get

    1. NYI- Stamkos
    2. COL- Lecavilier
    3. LAK- St. Louis
    4. TOR- Kovalchuk
    5. DAL- Staal
    6. OTW- Ward
    7. EDM- Bryzgalov
    8. MIN- Weber
    9. BUF- Dumont
    10. ANA- Hedman

    (I have Stamkos going 1st because of his age and his contract)

    (Lecavilier may fall because of his contract but you know someone would take him)

    (Kovalchuk falls to 4 because he’s a UFA at season’s end and Burke could ship him for top prospects)

    (Ottawa and Edmonton get franchise goalies)

    (Buffalo I think would take a veteran here and I’d guess they’d go with Dumont over Doan because JP of the PR boost)

    Also if you disagree with the draft thing feel free to submit your own order
    What do you think of these ideas

  8. Clayton February 21, 2013 at 4:40 am #

    And for why no other NHL teams have moved to as of late?

    If I’m not mistaken : Didn’t Gary Bettman tell Canada’s Government in the 90’s to make its NHL teams exempted from taxes or lose all the teams ?

  9. Jarred February 21, 2013 at 1:45 pm #

    I would like to franchise a chocolate business that will surely hit. I don’t wanna risk on franchising a business that it isn’t sure. In short, a money back guaranteed.

  10. Andrew February 23, 2013 at 3:55 am #

    Cani get financed without having credit? new or used? are there programs out there that are for first time buyers?

  11. Chi February 23, 2013 at 4:35 pm #

    The resturant is in India

  12. Tena February 24, 2013 at 2:08 pm #

    We’re looking to buy a baseball or sports franchise.

  13. Maryetta February 24, 2013 at 8:17 pm #

    Please advise a good Franchise opportunity in British Columbia.

  14. Tamatha February 25, 2013 at 2:44 pm #

    I wanted to know what a franchise opportunity i. I always see it on a company’s website, what is it?

  15. Dwain February 26, 2013 at 12:15 pm #

    Hi All,

    Does anyone know any good franchise magazines to make a lot of revenue from? I would like something that i can do locally or home based. Thanks!

  16. Lona February 26, 2013 at 5:49 pm #

    My husband and I are interested in learning more about their franchise opportunities. We would love to hear any information on the quality of the food and overall dining experience. I have heard great things and look forward to your feedback.
    Thanks!!!

  17. Suzanne February 27, 2013 at 7:13 pm #

    I am a 23 year old male finishing a BA Communications, . I have put together over 80,000 canadian dollars, that will be liquid as of April 2008.

    I would like to buy a franchise, but am uncertain whether Tim Hortons, Subway, UPS store, or other would be most profitable. I live in Montreal, QC, Canada. I am willing to relocate, but would ideally work locally. What should I do?

  18. Carlo March 1, 2013 at 7:57 am #

    I am living in Southern California. I want to own my own bussiness I was wondering if someone can tell me the real and honest opinion What is the best franchises and top business opportunities to buy in this economy and week market.?
    Thanks

  19. Sandy March 1, 2013 at 1:55 pm #

    Hey, Im a college student with a WONDERFUL opportunity! My school is providing a study abroad opportunity to GHANA!!! Our financial aid is supposed to cover the cost which is about 6,000 when you round it. However, I want to refrain from increasing my loans for this study abroad summer school program! How do I go about writing a proposal to get a sponsor, and can I even do that?

  20. Precious March 1, 2013 at 2:19 pm #

    Training8m Australia are Global Leaders in Corporate Governance, Personality Development, Sales and marketing management, Training in Business Development. Can I get Franchise Opportunity from Training8m

  21. Ines March 1, 2013 at 11:13 pm #

    I’m currently in college, and I see an amazing franchise opportunity for a Starbucks. Unfortunately, Starbucks does not franchise its operations.

    So how could I get a convincing word into the big man himself? 🙂

  22. Sixta March 3, 2013 at 8:57 am #

    Considering a franchise opportunity and wondering if there is enough demand for it.

  23. Marya March 3, 2013 at 11:59 am #

    If you have a business that meets the criteria for a good franchise concept. How much does it cost to franchise your business/concept? Is the fee paid up-front or over time?

  24. Modesto March 5, 2013 at 5:29 am #

    I would like to franchise a business that will surely hit. I don’t wanna risk on franchising a business that it isn’t sure. In short, a money back guaranteed.

  25. Alana March 7, 2013 at 4:42 pm #

    can i live in canada after my study? or should i move to usa after study?
    i am still planning to canada for study but i don’t know is the benefit of canada?

  26. Mark March 8, 2013 at 6:49 am #

    The geography of Canada is vary diverse and covers the second largest landmass in the World. How did this happen without Canada ever being a military force or an empire?

  27. Jaime March 9, 2013 at 8:38 am #

    Do you think Canada is a socialist experiment with an agenda of creeping into America??? Where did American socialist get their healthcare ideas from? Canada? Is Canada a socialist “SHlT-disturber” on America’s northern border?

  28. Morton April 2, 2013 at 9:10 am #

    Hello,

    I am planning to study in Canada. My parents live in America (non-citizens).

    Can i frequently travel to USA from Canada?
    Do i need a US visa issued in India or Canada?

    Have a nice day

  29. Ayako April 12, 2013 at 2:07 pm #

    What do I have to do to start a business or a website that list all Types of Franchises or business opportunities. Do I have to have any experence in doing this type work. if I start something like this do the Customers contact the Franchise Directly and I get Paid a Commission for listing the Different franchises

  30. Sheila May 3, 2013 at 2:45 pm #

    I was doing a little research on Property Preservation and this Franchise Opportunity came up. The name of the company is called REO RESQ, has anyone heard of this company? Also, starting a Property Preservation Business, do you think a franchise opportunity is the way to go?

  31. Salvatore May 6, 2013 at 7:38 am #

    Tell me what you would say about those questions below and anything you can understand, please. Do it as you own business plan and they you can provide the web links too. Thanks

    When writing a business plan for a franchise, information about the franchisor is critical in obtaining financing. The franchisor is the key to the operation. Its success or failure will ultimately be the franchisee’s success or failure. The questions listed in the franchise opportunity handbook must be answered. These questions include how many years the franchisor has been in operation, the types of assistance the franchisor provides to the franchisee (training, site selection, financing, etc.), what the franchisor provides for you that you cannot do on your own, how many other franchises the corporation has and where they are located. All franchise costs must also be itemized to show the initial franchise fee, the monthly royalty fee, and advertising fees. Finally, financial institutions and investors will usually want to see a copy of the offering circular and a sample franchise contract.
    The business plan will require the entrepreneur to answer:
    How long has this franchise been in business?
    How many outlets does it have operating?
    Do you have financial statements for the franchisor for the last three years?
    Do you have an offering circular?
    Do you have a sample franchise contract?
    Did you consider other franchises?
    Why did you pick this franchise over others?
    What services does the franchisor provide to franchisees?
    What are the costs involved?

  32. Jude May 9, 2013 at 4:28 pm #

    I’m looking into franchise opportunities and was wondering if anyone in Yahoo! Answers have any ideas about how good The UPS Store franchise is. Things like how much is needed to start. How long to break even. How profitable it is, etc.

    Thanks.

  33. Shelba June 7, 2013 at 6:12 am #

    Just give some website and tell me what you would say about those questions below and anything you can understand, please.

    When writing a business plan for a franchise, information about the franchisor is critical in obtaining financing. The franchisor is the key to the operation. Its success or failure will ultimately be the franchisee’s success or failure. The questions listed in the franchise opportunity handbook must be answered. These questions include how many years the franchisor has been in operation, the types of assistance the franchisor provides to the franchisee (training, site selection, financing, etc.), what the franchisor provides for you that you cannot do on your own, how many other franchises the corporation has and where they are located. All franchise costs must also be itemized to show the initial franchise fee, the monthly royalty fee, and advertising fees. Finally, financial institutions and investors will usually want to see a copy of the offering circular and a sample franchise contract.
    The business plan will require the entrepreneur to answer:
    How long has this franchise been in business?
    How many outlets does it have operating?
    Do you have financial statements for the franchisor for the last three years?
    Do you have an offering circular?
    Do you have a sample franchise contract?
    Did you consider other franchises?
    Why did you pick this franchise over others?
    What services does the franchisor provide to franchisees?
    What are the costs involved?

Leave a Reply