Finding Franchise Financing That Works for You
Buying a franchise can be the best decision you’ll ever make, giving you a business you can call your own, offering you flexibility between work and personal life, and creating a financial legacy for your family. But, when you’re buying for the first time, or even when you’re expanding your business, the process for coming up with third-party funding can seem overwhelming. At Kiddie Academy Educational Child Care, we understand. That’s why we’ve developed proven systems to help take as much of the anxiety out of the financing process as possible.
Lenders Like Child Care
Child care is a personally rewarding business to be in, one with a positive impact on your community that fulfills a growing need in our society. Parents need it so that they can go to work or school, and children need a safe place to be where they can learn and thrive. As a result, it’s a booming business and an important driver of the nation’s economy. The child care industry employs 1.6 million people and generates $47 billion in income annually.* With rising per-capita disposable income and birth rates, analysts predict the industry to continue to be strong for the foreseeable future.
“Lenders like the child care industry,” said Kevin Shaffer, Kiddie Academy’s Vice President of Finance. “It’s an industry that’s attractive to them because it’s strong and growing and they see customer stability, long length of stay and predictability. Lenders also like Kiddie Academy. They know we have a business model that works, proven operating processes and a 30-year history of Academy success. There aren’t many businesses where the owner has the opportunity to impress the customer twice a day, five days a week.”
Our Finance Pros Help Prepare You for the Process
Kiddie Academy’s experienced team of franchise-finance pros is at your service to help you navigate the process and find the best funding option available.
There are a lot of decisions to be made. Are you building or leasing? How much of a capital injection are you able to make? Do you want a fixed or variable loan? “Most franchisees come in without having done business financing before,” said Shaffer. “There are so many questions and the paperwork alone a challenge. But we make it as easy for them as possible.”
The Kiddie Academy finance team offers guidance and training on how to analyze potential of various sites as well as providing a framework of documents needed to prepare a financing package.
“We’ve vetted and developed strong relationships with many national and regional lenders,” said Shaffer. “When they see the name Kiddie Academy, they understand that we’ve carefully screened and prepared the loan applicant.”
Shaffer explained that another advantage of our relationships is that we also understand what sort of borrower works best for certain lenders. “Some prefer working with those who are building an Academy, some prefer those who are leasing. Knowing this helps us direct the franchisee to the available sources of financing to match individual Franchisee preferences.”
Shaffer said, “After you’ve completed your loan package, our finance team provides a list of suggested lenders, based on your information and preferences.”
Once the franchisee has identified a site and narrowed the list to two or three lenders, Shaffer’s team will make the introduction between the franchisee and lenders and provide the loan package information.
After the franchisee receives the term sheet from each lender, the Kiddie Academy team helps the franchisee understand how to evaluate them. “We’ll highlight advantages and disadvantages of each so that the franchisee can make an informed decision that’s right for them,” Shaffer added. “We’re available to continue working with them, all the way through the loan closing and grand opening.”
If you haven’t done so already, start your Kiddie Academy journey today by filling out our confidential Preliminary Questionnaire.
* Day Care in the US: Industry Market Research Report, IBISWorld.com, April 2018