Making Franchise Lending Better

Franchise Registry

By connecting more than 8,800 lenders to every franchise in the FRANdataFR_PNG
database, the Franchise Registry provides the information, services, and support that facilitate tens of thousands of loans to franchisees each year.

The Franchise Registry lists every franchise in the United States. While its primary purpose is to make lenders aware of the existence and viability of a franchise brand, many people, such as prospective franchisees, government agencies, educational institutions, and industry experts use the site to validate that a franchise is an existing and thriving company.

The Franchise Registry is where lenders come to do franchise financing. When a franchise brand’s prospective franchisees are ready to open a unit or when an existing franchisee need to refinance, the franchise brand/system needs to be included on the Franchise Registry in order for lenders to make the loan.

Franchise Financing Services Offered on the Franchise Registry:

  • Financing Registry Membership: Enables franchisors to make it as easy and as fast as possible for their franchisees to get loans with the best terms. A verified Franchise Registry membership:
    • Shows lenders that a franchisor has a vested interested and cares about their franchisee’s ability to get financing. A lender knows that they have an engaged franchisor in the financing process which will make the process smoother and more efficient.
    • Demonstrates of the level of support the franchise will get over the course of their franchisee life cycle. If they can’t make a small investment to make franchisee financing easy which is the only way that franchisees get into business, then what will their other support look like?
    • Because the franchisor is going through a verification process with their Franchise Registry membership, the franchisor is required to overcome hurdles such as reviewing their credit score and report to understand the credit risks to the system, lenders get a better educated franchisor. The Franchisor is able to constantly learn and improve based on their interaction with lenders while understanding their credit risk profile.
  • BCR Services: Lenders consider loan packages that do not have any information about the franchise system to be high risk and they are reluctant to make the deals. A Bank Credit Report (BCR) on your franchise system provides lenders the information they need to overcome their risk concerns. Endorsed by major lending institutions such as Bank of America, TD Bank, The Bancorp and others, the reports are beginning to be a requirement for franchise lending. As part of having FRANdata produce a BCR for your brand, you also get our loan support services to help answer any and all question from lenders while they underwrite the loan for your franchisee.

Click here to get registered

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