The consideration of an application for funding by an individual to a financial institution, whether it is a commercial bank or a development funding institution, always pivots around two principles:
The profile of the applicant candidate concerning the financial position and how an individual conducts their personal financial affairs. In some instances, prior experience in the industry in which the franchise brand operates will be required, e.g. the restaurant and hospitality industries. The funder will also assess the current lifestyle of the applicant to determine if the size and profitability of the new business suit the applicant and if expectations could be met.
The parameters of the genuine opportunity available, whether it's a new or existing business. The business case for the repayment of a loan is always dependent on the numbers, which is a function of location, projected sales, overheads, etc.
Therefore, a funding application can't be processed unless all the details of the applicant and the details of a business plan, demonstrating that the business will be able to repay its debt, are available. The initial step will always remain an application to the franchise brand to introduce a candidate. Specific opportunities would be communicated to be followed by an application for funding.
HJ Bosch & Sons Panel Beaters will refer successful applicants to suitable funders once the franchisor has approved an application. Still, every funder will also have its application and approval process.
What could be stated is that once a prospective franchisee has completed the application process, the same application will be submitted to the funder.
Should you wish to proceed with the application process, you will be required to apply online. After completing the application process, the franchisor will provide you with a detailed Disclosure Document as required by the Consumer Protection Act.
The application process is designed with three objectives:
First, allow the prospective candidate an opportunity to disclose and communicate all the personal information required by the franchisor and the funder to view how well-suited you are for assuming the franchisee's role.
As intimidating or time-consuming as the application process may seem, it exposes you to a fraction of the level of resilience required to own and manage your own franchised business.
Successful franchisees comply with the rules and procedures of the business system. Therefore, completing the application process steps can be deemed your introduction to adhering to the HJ Bosch & Sons Panel Beaters business system.
While the application process is not intended to discourage prospective franchisees or to create barriers to entry, the process, by its very nature, will serve as an early deterring mechanism for candidates who should not be pursuing business ownership. The truth is that the challenges a franchisee will face in their own business is significantly more complicated and daunting than the application process. If you are intimidated by the process, running a business will likely be more challenging than anticipating putting yourself, the franchisor, the funder, the landlord, and your future staff at risk.