Franchises for sale: finance advice for franchisees


HSBC head of franchising Cathryn Hayes on putting together a business plan...

"When you are putting together a business plan you need to give the bank enough information to make that decision as to whether we’re going to lend to you of not. So you need to start off with yourself, what’s your background, what are your skills, what other roles have you had... 

"Then you need to look at the business itself. Tell us a little bit about the franchise; how you are going to operate and how you are going to operate in your local market.

"And then you need to look at the figures, which are obviously very important. You’ll probably give us a couple of years at least of projections for your net profit, your sales turnover, so we can see how you think the business is going to work. We can see that as a basis of discussion when we meet you to talk about your lending needs."

On supporting franchising in the UK...

"Our job at HSBC is to get to know franchisors - even ones that aren’t so well known - and find out how they operate. We get a copy of the legal agreement, we get their accounts, we look at the sort of support they give franchisees and then use that information to make sure we can brief our lending managers when they are lending to franchisees."

 

About The Author

google+ Add to Circle
Sarah Louise Dean Writer
Sarah Louise produces content across all titles in the Dynamis stable.