Franchise Funding: How it works

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How FRANCHISE FUNDING is now done.

Transcript of Franchise Funding: How it works

Page 1: Franchise Funding: How it works

HowFRANCHISE FUNDING

is now done.

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Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd

INVESTOR FRANCHISEEFRANCHISOR

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Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd

WHO•Superannuation funds - $3 trillion• Institutions – life offices, banks, others• High Net Wealth• Significant Investor Visa - $350m p.a.WHY• Good yield• Volatility in other assets• Improved risk model• Supporting early-stage business

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Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd

Market

1,160 Franchise systems

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Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd

Tier 1 (5%) - 58Tier 2 (15%) - 174

Tier 3 (80%) - 928

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Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd

Franchisee Assessment 30%•Track record

•Net asset position•Training/education

Franchise System

Assessment 70%

•Only Tier 1 & 2 Franchisors

•Proven business model, adequate funding coverage•Robust franchisee

assessment, training, support.

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Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd

Listed Franchise Systems

x 4x 8

x 16x ?

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Only from Listed Franchise Systems

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Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd

FUNDING• Establish franchise• Purchase existing franchise• Refinance franchise• Refit franchise

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Online Portalwww.franchisemarketplace.com.au

Fund Managerwww.elcanocapital.com.au

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10 Million Clearing Pool Units

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10 Million Clearing Pool Units

Application$X

Funds$X

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10 Million Clearing Pool Units

X SPVclass Units

Buys units

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Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd

10 Million Clearing Pool Units

X SPVclass Units

Principal &

Interest

Principal&

Interest

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For further information please contact:Darren Lelliott (Managing Director)

Mobile: 0431 775 252 [email protected]