How Joyal Capital Management Helps Navigate Franchise Financing on the Buying and Selling Sides
How Joyal Capital Management Helps Navigate Franchise Financing on the Buying and Selling Sides

CEO and Managing Partner Gary F. Joyal offers insight into the best ways to maintain strong financial standing.

The foundation of franchising starts with the financing behind it. From real estate and rent to initial franchise fees and equipment, the costs required to launch a franchise business can add up quickly, and at times can seem overwhelming and confusing.

Companies such as Joyal Capital Management Franchise Development, a subsidiary of Joyal Capital Management, LLC., strive to create a seamless selling and buying process in what otherwise could be a stressful experience.

“Joyal Capital Management (JCM) brings 30 years of experience to a full range of buy-side and sell-side transactions, including mergers, leveraged buyouts, joint ventures, strategic alliances, refinancing divestitures and other restructurings,” said Gary F. Joyal, CEO & Managing Partner of Joyal Capital Management, LLC.

With over 250 franchisee clients representing 2,000 locations, JCM Franchise Development is built on the foundation of providing differentiated, value-added services to its clients on complex strategic decisions and transactions.

On the buying-side, JCM’s team of analysts prepare a detailed offering with all the needed data metrics needed for potential buyers to understand the opportunity.

“JCM encourages franchisees to work with a lending partner who is ready and willing to grow with them,” said Joyal. “It is recommended to be proactive in arranging a line of credit so the franchisee knows that funds are available as growth opportunities develop.”

Based in Plymouth, Massachusetts, Joyal Capital Management Franchise Development has seen strong results in brands like Dunkin’ Donuts which continue to grow both domestically and internationally at rapid rates.

“If growth is the primary focus, look to arrange longer amortization schedules to allow for cash flow relief during the development years,” said Joyal. “When amortizing loans over a longer period, it is important to check for prepayment penalties.”

When looking to sell, the importance of having clean and accurate historical financials will demonstrate credibility to the buyer. Showcasing a presentable store location that is in a durable condition will provide additional exposure to the market.

Moving forward, maintaining a strong brand image can help franchises and franchisees see success when it comes to their financial standings. Being aware of industry trends, looking for ways to improve and optimize business and staying financially stable are three key ways to establish healthy relationships within the industry whether you’re on the buying or selling side.

“As we are seeing across all industries, interest rates are on the rise,” said Joyal. “However, there are still a lot of quality franchise brands out there that lending institutions are excited to get behind. Solid brands, experienced franchisees and lenders are always looking to invest in new relationships."

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