the long term and provide loans that set them up for future success .
Thomas says the company relishes its place as “ the only online lender 100 percent focused on the franchise industry .” The company has signed 43 franchise partner brands , who collectively have an annual capital demand exceeding $ 1 billion . Franchisors like the “ relationship lender ” approach that supplies capital from multiple sources , eliminating the uncertainty of depending on a single-source lender , particularly in a down market .
ApplePie offers financing for both new and existing franchisees to open , expand , refinance , or acquire franchise businesses . The company also can help with equipment and remodels . “ Our ApplePie Core loans are optimized for franchisees looking to accelerate their growth , and our lending network provides a full host of SBA and conventional loan options ,” says Thomas . “ Overall , our financing options are flexible and can be optimized for whichever factor is most critical , including speed to money , short-term cash flows , or future growth .”
The credit marketplace in 2017 is dynamic . Thomas says one financing trend the company has noticed is recapitalization and refinance options . Many franchisees have equity locked up in existing units , or their existing debt has tied up all their personal collateral , inhibiting their growth . Through a recap , she says , franchisees can access liquidity by borrowing against their units and then use those funds for down payments on their next wave of locations .
They are also seeing signs of credit tightening and consolidation throughout the industry . The trend is based on larger economic
“ The only online lender 100 percent focused on the franchise industry .”
CASE STUDY
drivers and can ultimately lead to unpredictable access to capital . “ This is a risk to both franchisors and franchisees because when lender rules change , it can result in loan commitments being pulled with little or no warning ,” says Thomas . “ Our goal is to provide a more sustainable solution that is less affected by these external factors by having a diverse set of capital sources . With more sources , our loan availability becomes much more predictable throughout the credit cycle .” n
ApplePie to the Rescue
Keith Sirois has been a leader throughout his life . He has served in the U . S . Navy and worked in the foodservice industry for 40 years . During that time he has managed restaurant operations large and small , including franchise systems with more than 800 restaurants . He has previously held management roles at brands including Checkers , Mrs . Fields Cookies , and Taco Bell . Today he is the CEO of Big Boy Restaurants .
As a franchise industry veteran , Sirois knows the value of working with quality brands . One such brand was Massage Green Spa , an innovative health and wellness luxury spa that features a price point for all budgets . He signed on with Massage Green to open three locations in Florida and was midway through his financing plan for the first location in Tampa when he met a member of the ApplePie team at a conference .
“ I had been working with another lender for about eight weeks , but it was not a pleasant experience ,” Sirois recalls . He says the lender did not thoroughly communicate its requirements at the beginning , which led to an extensive , drawn-out underwriting and documentation process .
“ After meeting with ApplePie , I decided to make the switch right away ,” says Sirois . “ Not only were ApplePie ’ s terms better , they understood the Massage Green Spa brand , were clear about what was required , and didn ’ t change the rules midway through the funding process .”
As Sirois continues to grow his franchise footprint , he plans to work with ApplePie as his strategic financial partner . “ It ’ s a big deal for a business owner to find a lender who is easy to deal with and I plan to stick with ApplePie .”
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