Financing Case: Partners In Success #1
At Evolocity we provide more than just funding for your small business needs because we don’t really succeed unless you do. When you choose to partner with us, we take that very seriously so we are fully vested in the success of your business from day 1.
As Part 1 in our Partners in Success series, we explore how we helped a restaurant franchisee get back on the fast track to success thanks to our financing and a little creative intervention.
A restaurant franchisee was under financial pressure to make their lease payments. These payments had become too high to support when combined with the franchise royalty obligations and as a result, he started to fall behind. Committed to getting his business back on track, the restaurant owner asked both parties to reduce the size of their required payments. This is what happened:
Leasing company: we will reduce your payments on the condition that your franchise agrees to maintain your franchise license for no less than 2 years.
Franchise: we will agree to keep you for 2 years but your restaurant has become out-dated and we need you to invest 75K to update your location.
Franchisee: But I don’t have 75K!
And that’s where we came in.
A Tailored Financing Plan That Fit Like a Glove
We worked with the franchisee to put together a financing plan that would work for all parties involved. Evolocity provided the business loan required for renovations on the condition that both the lease company and franchise maintain their sides of the agreement. By reducing the franchisee’s payments and agreeing to keep him on for the stipulated 2 years, Evolocity was able to provide the working capital needed to complete this deal and satisfy all parties.
Another Satisfied Partner Back On The Fast Track
With all parties finally on the same page and the funding secured, the restaurant owner was able to restructure his lease payments and update his location with the required renovations. Evolocity’s financing plan enabled the business owner to become cash flow positive with less long-term debt obligations. The franchisee is now back on track, enjoying reduced monthly financial obligations and lots of success in his updated restaurant.