Closing a loan in the "new normal" is not easy. Franchisors can help franchisees get deals closed by providing solutions that help franchisees organize legal documents for due diligence, monitor the loan closing process and keep in compliance with loan and franchise agreements.
Refranchising company stores is complex and stressful. You need to select the stores, collect and organize all the documentation, provide it to multiple bidders, then negotiate and close multiple transactions concurrently, all while having a "day job".
Managing portfolio transactions- whether financing, sales or purchases- is time consuming, document intensive and expensive. Getting ready for due diligences requires collecting, organizing and distributing sets of documents for each unit and ownership entity. Closing the transaction requires collaboration among attorneys, bankers, executives and managers.
Managing a portfolio of company stores is time consuming, document intensive and expensive. There are countless documents, critical dates to tract, build outs, permitting and ongoing compliance. Failing to timely exercise even one extension option can result in rental increases that impact profitability.
Pain- Managing a multi-unit operation is complex and stressful, interacting with landlords, lenders, attorneys, and CPAs. You need to focus on your customers and operations, not legal paperwork. But missing a lease extension or failing to comply with a contract cost you a fortune.
Pain- Franchising is a document intensive business with lots of compliance requirements, legal services and risk of personal liability for mistakes. Managing all your FDD, state and franchisee compliance records can be overwhelming.