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Helen Hughes BA(Hons)Helen Hughes BA(Hons)

Sector Manager, Franchise DevelopmentSector Manager, Franchise DevelopmentNatWestNatWest

Role of the Franchise Section

Key pointsKey points

» Maintain relationship with franchisors

» Maintain information on active franchisors

» Facilitate finance for both franchisees and franchisors

» 930 Franchisors

» 22,400 Franchisees

» 39,000 Franchise units

» 561,000 Employed

» £13.7bn Turnover

» 92% of franchisees say they are profitable

2013 NatWest/BFA Survey results:2013 NatWest/BFA Survey results:

Statistics:

Lending Criteria

BorrowingBorrowing

» Finance up to 70% of the total start up costs (including any working capital) for new Franchisees

» The length of a loan is typically no longer than the initial term of the franchise agreement or the premises lease

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A

MORTGAGE OR OTHER DEBT SECURED ON IT

Security may be required. Product fees may apply. Over 18s only.

The Business Plan..The Business Plan..

Suggestions:Suggestions:» Tailored around your own individual skills and aspirations

» Allow for any future expansion plans

» Benchmark actual performance against the plan

» Negative trends can be spotted earlier

» Your career details, assets & liabilities etc.

» The franchise; what it is and how it works

» Information on the marketplace / sector & the Marketing plan

» The business location and details of competitors

» A detailed breakdown of the start-up costs

» Financial projections, a cashflow forecast, a profit and loss and a balance sheet

Considerations:Considerations:

Points to think about:Points to think about:

» Take care not to over or under borrow

» If appropriate, seek professional advice (e.g. bfa, Accountants, Solicitor, etc)

» Consider your personal drawing requirements - we will.

» Undertake thorough research before signing

» Talk to other franchisees

» Assess the business experience and financial position of the franchisor

The RBS Group does not The RBS Group does not warrant, recommend or warrant, recommend or

endorse specific endorse specific franchise systemsfranchise systems

NatWest Franchise Team NatWest Franchise Team

0800 092 9117 / Minicom 0800 404 61610800 092 9117 / Minicom 0800 404 6161

Helen.hughes1@natwest.comHelen.hughes1@natwest.com

franchise@natwest.comfranchise@natwest.com

www.natwest.com/franchise

Lines are open from 9am – 5.30pm (calls may be recorded).