Businesses eager to expand through franchising have a new source
of growth capital, according to Donald D. Boroian, Chairman and CEO of Francorp,
Inc., the Olympia Fields, Illinois-based company that specializes in franchise
consulting and development.
Boroian's new company, Francorp Capital, Inc.,
is in the process of raising $30 million to provide qualified businesses with
funds they need to launch franchise programs. Each business selected by Francorp
Capital, Inc. will receive a capital infusion of $300,000 for franchise program
development and implementation.
"This program will help new franchise
companies during the critical early phase when undercapitalized new franchisors
sometimes fail," said Boroian.
Francorp Capital, Inc. clients will
repay this capital infusion out of franchise fees and royalties from franchises
sold, a repayment system that Boroian says is "unique to franchise financing."
applying for Francorp Capital, Inc.'s capital infusion will be evaluated based
upon their potential for success as franchisors. Criteria include profitability
and growth, the existing markets for their particular franchises, and the amount
of investment required by the franchisee.
Critical to the success of the
new program, says Boroian, is the participation of Francorp, Inc., the world's
leading firm specializing in franchise consulting and development. In the past
two decades, Francorp, Inc. has helped more than 2,000 businesses join the ranks
of franchisors. Among its clients are Kentucky Fried Chicken, Omni Hotels, Ace
Hardware, Damon's, USA Baby, Auntie Anne's Pretzels, Culver's, Jimmy John's and
Francorp, Inc. will be responsible for submitting qualified candidates
and for creating a full development program for each candidate selected. Francorp
Capital, Inc. will also participate in the preliminary evaluation process and
will monitor the progress of each new franchise, to ensure the successful implementation
of the business plan. Franchise development services include the formulation of
a franchise strategy, drafting of required documents and operations manuals, creation
of franchise marketing materials and a marketing plan, and training of franchise