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FRANCHISE FINANCE

Franchise Finance involves financing of a new or the acquisition of existing franchises for SMME’s within KZN.

Franchise Requirements:

  • Client needs to speak to franchisor first
  • Needs to find out the own contribution required from the franchisor’s side – this is usually an encumbered amount meaning it cannot be borrowed
  • Client must be approved by franchisor as a franchisee
  • If it is a new franchise, the franchisor must do a feasibility study of the location to be opened in
  • Basic information required for a franchise:
    • Comprehensive business plan / Business Profile
    • Cash flow projections for 5 years, including income statement and balance sheet (first year reflected monthly)
    • List of equipment to be financed and a breakdown of the utilization of the finance (2 quotations to be provided, indicate preferred)
    • Proof of own contribution (if applicable)
    • Copy of signed franchise agreement
    • Feasibility study by franchisor
    • Approval as a franchisee
    • CVs on all members/shareholders/directors/key stafft
    • Signed Personal Statement of assets and liabilities for all members/shareholders/directors

    © Copyright 2015
    Ithala is an Authorised Financial Services and Credit Provider
    FSP License No. 17139 NCRCP No. 1559 Reg No. 2001/007427/30
    Ithala SOC Limited is a wholly-owned subsidiary of Ithala Development Finance Corporation Limited