Streamline the financing of your new franchisees with a crowdfunding arrangement.
In the past, many franchises had arrangements with banks to quickly help franchisees secure financing for their new locations. Nowadays, except for large-scale financing, banks are not very enthusiastic about such arrangements, especially if it involves smaller amounts and there is no good collateral available. However, as a franchisor, you can still assist your new entrepreneurs with their financing. We offer a crowdfunding arrangement for this purpose.
How does crowdfunding work?
In crowdfunding, financing is raised from many small investors (the crowd). These investors are individuals looking for a higher return on their money than traditional savings accounts offer and are willing to accept a slightly higher risk.
How does Koelewijn & Partners guide crowdfunding projects?
We guide crowdfunding projects to increase the likelihood of success on a crowdfunding platform. We do this by supporting the business plan and refining its financial outline. Our connections at crowdfunding platforms recognize our quality and always take the applications seriously. As a result, all financing dossiers we have submitted to crowdfunding platforms so far have been successfully funded.
Additionally, through this approach, we can also guide hybrid financings, which might be partly funded via crowdfunding and partly through traditional banks.
"Thanks to the arrangement with Koelewijn & Partners, new franchisees can get started faster with a higher chance of success and at lower costs."
Jos Vermeer – Franchisor of Personal Fitness Nederland
How does the crowdfunding arrangement work?
The crowdfunding arrangement functions in many ways similar to the traditional financing arrangement at a bank. Since we, as an intermediary, know the franchise model well and understand that it has a strong foundation, we can streamline the financing process and reduce financing costs.
A part of this is the development of a standard financial forecasting model where the franchisee can fill in their assumptions. This model helps the new franchisee to relatively quickly and simply create sales, liquidity, and balance forecasts. This offers several advantages:
- The entrepreneur can use this model as part of their own due diligence.
- The entrepreneur can more rapidly and easily substantiate their business plan in a thorough way that financiers appreciate.
- We, as an intermediary, can evaluate, optimize, and guide the case towards financing more quickly.
As a franchise model, you want candidates to start as soon as possible. Our crowdfunding arrangement can assist with this. An example of a franchise that applies this successfully is Personal Fitness Nederland. Franchisor Jos Vermeer confirms this: “Thanks to our arrangement with Koelewijn & Partners, new franchisees can start more quickly. And this makes it a very valuable addition to our concept.”