If you are looking to start a business while limiting your risk, a franchise can be a worthwhile option. Provided you are willing to accept certain rules, the franchise model can be a satisfying and profitable springboard for success.
When you purchase a franchise, you're purchasing a structured, proven business model. It also means you will benefit from a network built up over time, as well as the name recognition of the business.
Those are the well-known advantages of franchises. A lesser-known advantage is that setting up the financing and operations management for a franchise can be much easier by relying on specialized services, such as those offered by National Bank Financial Group.
National Bank's Franchises and Partnerships department has developed a unique expertise. It helps franchisors expand their network and offers franchisees a range of solutions tailored to their needs. Here's how it works:
As you likely know, entrepreneurs who wish to start a business must defend their idea and business plan in order to obtain bank financing or government funding.
When it comes to franchises and business partnerships, National Bank has adopted a different approach, as the situation of a potential franchisee is different.
"We create financial service models for franchisees with the help of the franchisor," explained Myriam Baudot, Senior Manager — Expertise Consulting Group, Business Financing. "This facilitates the development of a franchisee network."
In concrete terms, this means that the Bank signs an agreement with a franchisor to offer all its franchisees a range of services tailored to the brand's business model. Once selected by the franchisor, a franchisee has access to a ready-made, customized solution.
In order to develop solutions that are unique to each franchisor, Ms. Baudot's team takes the time to analyze and understand the franchisor's brand, business development plan and market position.
"Gaining an understanding of the franchisor's business model and behaviour with its network helps us pave the way for franchisees and facilitates their dealings with the Bank," explained Christian Rojas, Manager — Franchises and Partnerships.
By having a specialized team in place to analyze and work with franchisors, National Bank can make life much easier for franchisees. Why should every new franchisee of an established brand have to explain how the company works, the business model and market? The Bank has developed a thorough expertise in this area by working with the majority of franchisors in Quebec and by taking an interest in franchisors that have recently set up operations in the province. This expertise enables the Bank to offer solutions that are tailored to the specific needs of each franchisor, as no two business models are the same.
"Our job is to really get to know franchisors and understand how they operate. Franchisees will then be better supported and the process will be easier when they approach the Bank," added Ms. Baudot.
This creates one less headache for business owners, who can rely on the Bank's team of seasoned advisors. The Bank's expertise is available to new franchisors, as well as to those who are expanding or taking over a franchise.
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