Post on 25-Jan-2015
description
Innovative Candidate Financing
Solutions Through Technology
Evolution of Franchise Financing
Welcome
www.FranEquity.com
FranEquitySM
Building Qualified Partnerships
Introduction
FranEquity has developed a financing platform that connects under financed candidates, angel investors, existing operators, 401k and debt lenders and aggregates their capital resources so they may create an Investment Group and purchase a franchise as a corporation. Essentially, finance dating for entrepreneurs and investors.
The platform enables your candidates to raise enough capital to either purchase a franchise outright or use their combined equity to finance a percentage of the business utilizing traditional debt financing options.
FranEquity acts as a CRM tool where you will be able to register, manage and track your under financed candidates and their financing progress.
The platform is Success Based, meaning there is only upside by implementing the platform. We provide your organization with a custom micro-website and are only compensated in the event that a franchise is successfully sold through the platform.
FranEquitySM
Building Qualified Partnerships
Our proprietary Financing Introduction Platform enables under financed candidates and operators to seamlessly create investment groups that will attract a variety of financing options which may result in the development of well capitalized investment groups.
Financing Platform
Lender
EquityInvestment
Group
Candidate
401K
$$
Savings
Other
Purchase Franchise
Groups are eligible for debt financing based on a 50% equity to franchise value
Angel
Existing Operator
$
FranEquitySM
Building Qualified Partnerships
Types of Financing Found on FranEquity
New Operator <-> New Operator Partnership: Candidates meet like minded business people that wish to purchase the same franchise and pool their capital with them and either purchase a franchise with 100% equity or obtain a business loan once they have at least 50% of the equity needed pledged.
New Operator -> 401K or Debt Financing: Candidates Access capital from their 401K or retirement funds or obtain a business loan through our affiliates.
New Operator <-> Existing Operator Partnership: Candidates meet existing franchise operators and pool their capital with them and either purchase a franchise with 100% equity or obtain a business loan once they have at least 50% equity needed pledged.
Angel Investor -> New or Existing Operator: Candidates meet Angel Investors that are looking to be silent partners in a new franchise or interested in helping an existing franchisee expand into a new territory.
Private Equity Groups - > New Operators: Candidates meet Private Equity Groups that are seeking to purchase multiple units and seeking operators to run the units and be equity partners.
FranEquitySM
Building Qualified Partnerships
Your FranEquity Website
Upon licensing our technology, FranEquity will create and publish a custom website with a unique URL that will communicate to your candidates how the platform works, invite them to register for free and enable them to research your franchise and search open investment groups or create their own potential investment group.
If a candidate wishes to join or create their own group they will be required to create a Member Profile and accept the Terms of Use before utilizing the service.
FranEquitySM
Building Qualified Partnerships
How It Works For Candidates
1. Candidates create a Member Profile on your custom micro-website.
2. Candidates may then create or join an Investment Group around your franchise in a specific geographic location.
3. Once enough equity has been pledged or debt financing acquired, candidates undergo a verification process that includes a background, credit and reference check.
4. If the Members pass the verification, they are introduced to their potential partners, where they will undergo a mutual discovery and discuss the structure of the financing.
5. If the Members wish to move forward, they will negotiate shareholder and employment agreements and form company.
6. Partners then are introduced to you for a mutual discovery and discuss the purchase of your franchise.
Candidate
Create/Join An Investment
Group
FranEquity Platform
Total Capital Needed is Pledged
Partners Meet & Form
Corporation
Partners PurchaseFranchise
Under Financed Candidates Use The FranEquity Platform To Find Debt or Equity Financing
FranEquitySM
Building Qualified Partnerships
How Do Candidates Get Started?
Candidates log onto your FranEquity website and click on “Join Now” to create a Member Profile.
Franchisors FranEquity Website
FranEquitySM
Building Qualified Partnerships
How Candidates Register
To register on your FranEquity Website, candidates create a Member Profile by filling out the Registration Form that includes their professional and financial background and the amount of capital they currently have to pledge towards your franchise opportunity.
Registration Form
Member Profile Example
FranEquitySM
Building Qualified Partnerships
Candidates Account Login
Franchisors FranEquity Website
After a candidate has registered, the candidate will log into their Member Account to create or join a “Potential Investment Group” and start the process of finding capital or debt partners.
FranEquitySM
Building Qualified Partnerships
Member Account Dashboard
Once a candidate has logged in to their Member Account Dashboard, they will click on “Create Group” to create their own Potential Investment Group” or click on “Search Group” if they would like to look for existing opportunities that they can join.
How Candidates Create An Investment Group
FranEquitySM
Building Qualified Partnerships
Member Account
The candidate will then be directed to the Franchise Listing Page, where they will be required to select your franchise name from a drop down menu that will bring them to an overview of your franchise opportunity.
How Candidates Create An Investment Group
FranEquitySM
Building Qualified Partnerships
Member Account
Once the candidate has selected the franchise name from the drop down menu, they will be redirected to your franchise overview and will click on “Create a Group” button, which will bring them to the “Create a Group Form.”
How Candidates Create An Investment Group
FranEquitySM
Building Qualified Partnerships
To create a Potential Investment Group, candidates will be required to fill out information regarding their potential investment opportunity. The following is an explanation of the fields on the form:
Group Name: Creates a unique identifier for the group. IE: MyGroup
Amount To Invest: Candidate enters how much capital they currently have to put towards the franchise opportunity.
Min. Investment Per Partner: Candidate enters the amount of capital they need to launch the franchise.
Parentage of Margin: Candidate enters the percentage above or below the Min. Investment they are willing to accept.
Location information: This is the proposed location of the franchise they would like to open.
Partners Information: This is the type of characteristics they would like in a partner or investor.
Note: This is additional information that the candidate can enter that will tell potential investors more about their financial situation and why they would be a good partner.
Member Account
How Candidates Create a Potential investment Group
Member Account
Once a candidate has filled out the form, they will click on the “Create Group” button which will publish the Potential Group Opportunity so other candidates, angels, operators and lenders can view the opportunity and join if they wish to pledge debt or equity to the group.
How Candidates Publish a Potential Investment Group
Member Account
Group Is Successfully Published
After a candidate has filled out the Create a Group Form, the system will return them to their dashboard and display the group they have created.
FranEquitySM
Building Qualified Partnerships
Now What Happens?
1. Commit To Verification Process: Candidates will receive an emailthat will inform them that their potential group has met its financial goals and is now ready to move into the verification process. To move forward in the process, the candidate will be required to click on the “Commit” button in the email. Candidates can also do this through your Member Account.
2. Member Verification: Once all Group Members have clicked on “Confirm” candidates will be contacted by a FranEquity Representative who will verify their information including a background, reference and credit check.
3. Group Meeting: Once all Candidates have undergone theverification phase, a group meeting will be scheduled and candidates will have the opportunity to meet their potential partners or investors and discuss a mutual investment including the terms of the partnership.
After the group meeting candidates may decide if they wish to moveforward with a partnership. If all members wish to proceed,FranEquity will introduce the group to the Franchisor for a mutualdiscovery and discussions on the possibility of purchasing thefranchise.
Once a candidate has successfully created a Potential Investment Group, they will be notified via email when another individual joins by pledging equity or debt to the group.
Once enough capital and or debt has been pledged to the group, they will then proceed through the Verification and introduction process described on the right.
FranEquitySM
Building Qualified Partnerships
Franchisor Administration Platform
franequity.com/youradmin
Through an easy to use Administration Platform, you will have the ability to:
Customize your website Manage and communicate
with candidates Track and manage
investment groups as they move through the process
Add and manage affiliates that can refer under financed candidates to your FranEquity website
View website activity reports
In addition to the administrative functions, clients will receive email notifications anytime an event occurs on your FranEquity Website.
Administration Account
FranEquitySM
Building Qualified Partnerships
Integration & Support
FranEquity will work with your Marketing and Sales Group to Integrate the platform into your organization. Once integrated, we will train your administrators and sales team to effectively employ the technology and create investment groups from your under financed candidates.
Free Integration Includes:
Assistance in Creating Custom Web Interface Platform Training For Sales Team Marketing Materials for Candidates Ongoing Customer Service and Training
Fees
FranEquity is a success based platform. We are compensated only when an Investment Group successfully purchases your franchise through the platform.
Success Fee:
Franchisors – 15% of Franchise Fee.
Integration & Fees
FranEquitySM
Building Qualified Partnerships
Next Steps
It is easy to get started with our technology and there is no risk as it is a pay for performance platform.
Steps:
Review Software License Agreement and Execute
Schedule Webinar with FranEquity to learn how to use your FranEquity Website
Launch!
Next Steps
514 E. 81st StreetSuite #10New York, NY 10028
T: (646) 684-3068E: Info@FranEquity.comW: www.FranEquity.com
FranEquitySM
Building Qualified Partnerships
FranEquitySM
Building Qualified Partnerships
Legal Disclaimer
FranEquitySM
Building Qualified Partnerships
LEGAL DISCLAIMER:
In no way is FranEquity offering or selling securities of any type whatsoever, does not make
investments of any type in opportunities posted by its members and does not charge its
member’s any “consideration” or fees for utilizing its introduction service. The service is simply
a platform to meet other individuals for the purpose of exploring a possible mutual investment in
a franchise opportunity.
Moreover, FranEquity does not provide legal or investment advice and the use of this service is
at each members own risk. Finally, FranEquity does not guarantee any introductions to investors
nor does it guarantee that a franchisor will accept a member into their system.
Members are required to accept the Terms of Use that will be available for their review after
creating a Member Profile should they wish to utilize the service. Members are encouraged to
carefully review these terms prior to accepting the terms and using the service.