How to Guide - International Franchise Association

Rocco Fiorentino, CFE
President & CEO
More than 25 years of franchise industry experience
Director and board member for Swiss Farm Stores and
Saxbys Coffee
Former multi-unit franchisee of Krispy Kreme Doughnuts
for Pennsylvania, New Jersey and Delaware.
Currently serves on the Board of Directors for the
International Franchise Association (IFA) and Chair of IFA’s
Membership Committee.
Past Chairman for the Multi-Unit Franchise Conference,
and Member and Board of Advisors for the Multi-Unit
Franchise Conference.
David Grams
Chief Credit Officer
35 years of banking experience, most of which has been in
commercial lending
Bachelor’s degree, two master’s degrees, and doctorate
degree while acquiring hands-on experience at Bank of
America, Fleet Bank, Valley National Bank, and most
recently at National Penn Bank
Very specialized concentration and expertise in the various
Government Guaranteed loan programs including the SBA
7a, 504, SLA, Express and Micro loan programs
Bob McQuillan
VP of Franchise Development
Years in business – 10 years, started in 2004
Number of units system wide 130
Initial investment required $346,386 to
$463,595
Over a decade's worth of experience in the
franchising industry and has held senior
management positions with companies
such as Hollywood Tans and Tanworld.
Heather Harris
President
Heather Harris was appointed President of CycleBar
Franchising in July.
Most recently, Heather held the role of General
Manager and Vice President at Donna Karan
Intimates, where she drove strategic direction and
execution of a multi-million dollar company
turnaround.
Originally from Cincinnati, Heather is passionate
about fitness and is eager to utilize her high-level
global branding experience in the franchise
industry.
Is your brand ready for
financial review?
•SBA Registry
•Bank Credit Report
•FDD
•Item 19
•Item 20
Is your candidate ready for
financial review?
•Personal Financial Statement
•Individual Business Plan
•Funding Process
•Funding Partner
Strategies for Success
•Partner with a funding source
•Proprietary Funding Programs
•Well Defined Processes
•Performance
SBA Financing
•Changes in SBA lending made to assist in franchise financing
•SBA now offers free review Franchise Agreement for affiliation rules for lenders
•All loans under $350k are now processed as Small Business loans replacing
form 4 and multiple forms with standardized Form 1919 for all loans
•Excess liquidity test has been removed
•New collateral requirements – removes “all available” (particularly important for multi-units)
•SBA guarantee fee continues to be waived this year for loans $150k and under
401(k) Rollover Funding
•Retirement Account Rollover for equity injection and/or self funding
•Provides ability to pay self a salary from the retirement plan and therefore
eliminate the need to include an owner's salary in the first year of projections for
the new business
•Demonstrates to the lender access to additional working capital to get the
business through the start-up phase if the business struggles early
•These have been strong selling points to lenders and a proven strategy to get
more deals approved
Alternative Financing
Securities Backed Lines of Credit
•Fast & Flexible
•Cost of funds
Equipment Leasing
•When only equipment financing is needed
•Can be used in conjunction with above funding programs
for greater flexibility
Questions?