For some entrepreneurs, choosing a franchise is a way to fulfill entrepreneurial goals while leveraging the name recognition and marketing from big brands. However, securing a loan can be overwhelming. Yesterday, February 15, BoeFly and 1851 Franchise announced a tool to help prospective franchisees navigate the franchise financing landscape.
The new Franchise Finance Index provides prospective franchisees with a monthly snapshot of franchise lending patters. To compile the January 2016 Franchise Financial Index, BoeFly and 1851 Franchise collected and analyzed statistics from BoeFly’s bQual, which helps prospective franchisees find lenders and work through the lending process. The statistics from bQual account for approximately 9,000 franchise units around the United States and includes data from brands like Checkers, Firehouse Subs, Jamba Juice, Lenny’s Sub Shop, Smoothie King, Wayback Burgers, and Papa Murphy’s. The average FICO score for approved franchisees was 748.15, and average liquid assets were $158,760. The Index also noted that Texas, California and Florida are the top three active states for franchise leads.
“With this Index, we’re trying to provide an honest look into what we’re seeing here at BoeFly for the larger market. By providing this aggregated data that only we have access to, we expect to educate those interested in franchise sales and financing alike,” said Mike Rozman, chief executive officer of BoeFly, in a press release.
Nick Powills, chief brand strategist and publisher for 1851 Franchise, stated in the same press release that the information from the Franchise Finance Index will help potential franchisees determine if they’re ready to own a franchise. As a result, prospective franchisees will have more information at their disposal when weighing the pros and cons of courting a big brand.