In Canada, there’s been some recent changes lately in the funding of formulas for franchising. What’s included now, as recent as September of 2022, are the franchise fees, marketing costs, inventory legal costs, soft costs.
Traditionally the banks would finance up to 70 percent of the hard costs, equipment, renovations result in improvements, that sort of thing, FFE, furniture fixtures and equipment, and that includes the soft costs.
But don’t be misled, the overall financing package remains the same. You need seventy percent, perhaps a maximum of five hundred thousand dollars, depending on the bank you’re talking to. Get a good credit score still, some skin in the game obviously, some collateral.
The bank must like the business model. So a home-based business with no hard assets to collateralize is a little bit tougher. Where if you’re getting to get restaurant or retail type operation, there’s more hard asset collateral that the bank can take a lean against.
So more is available to you today, September 2022, to use in your financing model. But the overall package remains the same. So just to structure the rub, so if you’re looking at that give us a call, Andrew, My Franchise Partners. Discuss what you’re looking for, how you’re going to get there. The same criteria still apply, matching what’s right for you, the match is right for your neighbor your friends. talk to you soon, Andrew, My Franchise Partners, have a great day.