5 & Diner Employs New Financing Solutions
As part of its aggressive franchise growth plan to bring back the roadside diner experience across the country, 5 & Diner has announced strategic relationships with BoeFly, the premier online marketplace connecting lenders with business borrowers, and FRANdata, the franchise industry’s go-to source for objective information and analysis, to help potential franchisees with bank financing and smarter business decision making.
“As we started speaking with potential franchise partners, we recognized the need to provide resources to help our franchisees open and operate successful 5 & Diner franchise locations”, says Tim Sheehan, CFO of 5 & Diner of North America.
“Helping them identify lending options and secure financing is critical to this effort”
5 & Diner’s relationship with BoeFly will help franchise owners research and secure financing in a simple, risk-free process.
“Today, even top franchisors face a significant challenge – converting otherwise qualified franchisee candidates into ongoing, paying customers because of the difficulty they have accessing capital,” says Mike Rozman, Co-President of BoeFly.
“Franchise lending has been down by as much as 40 percent in the past two years due in part to the inefficiencies in the lending process that have been exposed by the financial crisis. BoeFly eliminates these inefficiencies by connecting franchisees with banks that are ready and willing to lend.”
In addition, working with FRANdata, 5 & Diner has joined the SBA Registry and is developing a Bank Credit Report..
"5 & Diner is making it easier for their franchisees to get financing by ensuring that their franchise agreements are pre-approved by the SBA and by producing an annual Bank Credit Report for the brand,” says Edith Wiseman, Vice President of Client Solutions at FRANdata.
“In addition to providing the underwriting information needed to make a credit decision, the BCR builds trust with the lenders by sharing comparative historical performance information.”
The Franchise Registry is an integral part of the process which allows lenders to get SBA-guarantees for loans.
Wiseman continues, “These tools are required by many lenders before they will even consider granting a loan.”
To help attract new franchisees, 5 & Diner has launched a new prototype designed to lower development costs and introduce a non-freestanding development option.
The authenticity and unique nature of the business means that franchise competition is nearly nonexistent – as an authentic ‘50s diner concept, 5 & Diner isn’t just another burger joint or family dining chain. And with locations currently in five states there is plenty of room to grow.
Typical development costs range from $450,000-$750,000 and the average unit sales volume is more than $1.1 million.
Heralded and loved for its classic ‘50s décor complete with chrome, bright lights, juke boxes and open seating, 5 & Diner is cashing in on the $33 billion family dining segment. To inquire about franchise opportunities, visit www.5anddinerfranchise.com.
Founded in Phoenix, Arizona in 1989, 5 & Diner has become known for its no-holds-barred ‘50s flashback theme, top-quality food at an affordable price, and award-winning burgers and shakes. Currently with 12 locations across five states.
BoeFly makes it easier to obtain small business loans (http://www.boefly.com/) by reducing the time, cost, complexity, inefficiency and frustration associated with small business lending.
FRANdata is an independent research company that tracks and analyzes companies that use franchising as a growth model. The Arlington, Va.-based company provides objective benchmarking of franchise performance that allows brands to improve operations, lower costs, and efficiently grow.