• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Finance presentation
 

Finance presentation

on

  • 398 views

 

Statistics

Views

Total Views
398
Views on SlideShare
398
Embed Views
0

Actions

Likes
0
Downloads
1
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Finance presentation Finance presentation Presentation Transcript

    • Financing Alternatives for International Franchising Martin Francis Senior Manager Global & Corporate Franchising HSBC Bank Nathalie Dubiez Head of Franchising HSBC France
    • HSBC Group
      • Committed to international business with 10k offices in 83 countries and territories including commercial banking in 55+ countries
      • Developing franchise finance internationally
    • HSBC Group
      • Dedicated franchise specialists
      • Franchise profiles
      • Local introductions
      • International co-ordination from UK with 20+ years’ experience
      • International banking services, e.g. centres to facilitate account-opening, cash management
    • Financing of Franchising
      • How banks view franchising
      • Franchising into a country - how banks can help
      • When to raise financing with bank
      • Options for franchise finance overseas
      • How franchisors can help their franchisees
      • Summary
    • How banks view franchising
      • Improved risk/return compared with equivalent non-franchise operations
        • lower failure rate
        • proven market for goods/services
        • tried and tested systems
        • ongoing support and training
      • Wide range of industries in a significant and growing business segment
    • How banks view franchising
      • Opportunity to develop relationship with
        • franchisor
        • franchisor’s overseas operations/partners
        • sub-franchisees
      • Major banks have franchise specialists
    • How banks can help
      • Franchise Specialists - franchise unit
      • Maintains relationships with:
        • franchisors, franchise professionals, franchise industry association, e.g. British Franchise Association, whose awards HSBC sponsors
      • Handles PR, marketing, exhibitions, seminars, training, market intelligence
    • How banks can help
      • Franchise Specialists - franchise unit
      • Guidance about franchising - website/guides
      • Tailored packages for franchisees with lending up to 70% of start-up/working capital needs for established names
      • Internationally-oriented banks can assist franchisors taking concept overseas
    • When to raise financing with bank
      • Consult bank at early stage
      • Bank will want to assess franchise viability
      • Importance of professional advice
      • Pilot operation seen as vital to prove concept in a new country, however well established overseas
    • Options for franchise finance overseas
      • Bank will consider:
      • Franchisor’s business concept :
        • local customer proposition/financial model
      • Franchisor’s international strategy
      • Franchisor’s track record overseas
      • Resources available - management and financial
    • Options for franchise finance overseas
      • Bank will consider structure:
      • direct
      • JV
      • area developer
      • master franchise
    • Options for franchise finance overseas
      • Master franchisee
      • Equity/debt split
      • Venture capital/equity finance
        • Business Angels/Regional Development Agencies
      • Full range of business lending products
    • Options for franchise finance overseas
      • Franchisees
      • Full range of business lending products
      • Franchise-specific arrangements efficient
      • 50%-70% of start-up costs/working capital
      • Costs - interest and fees take into account the risk evaluation (including stake/security)
    • Options for franchise finance overseas
      • Franchisees
      • Loan
        • term tied in with franchise agreement
        • flexible capital repayments possible
      • Working capital facility
      • Factoring/Leasing/Vehicle finance
      • Money transmission
      • Security/collateral
        • support from Govt bodies e.g. SFLG/SOFARIS
    • How you can help your franchisees
      • What do banks look for from franchisors?
      • Franchisor’s financial information and strategy/business plan
      • Franchisee selection criteria/training/support
      • Existing franchisees’ performance
      • Terms of franchise agreement
        • upfront and ongoing fees/performance conditions/term
    • How you can help your franchisees
      • What do banks look for from franchisees?
      • Background to franchisee
      • Business plan - how will franchise succeed in local environment?
      • Franchisee’s ‘survival budget’, including a breakeven analysis within realistic profit and cash flow projections
      • Security/collateral
    • How you can help your franchisees
      • Other considerations
      • Language
      • Ways of doing business
      • Legal differences
      • Real estate issues
      • Staffing
      • Supply chain
    • Summary
      • Franchising is a key part of commercial activity in many countries
      • Good market for banks to source new business
      • Talk to the banks at an early stage and help bank to understand how your concept will operate
    •   Martin Francis, Senior Manager Global & Corporate Franchising HSBC Bank plc, Level 32 London E14 5HQ +44 (0) 207 991 0792 [email_address]   Nathalie Dubiez, Responsable Marché de la Franchise HSBC France, 75419 PARIS cedex 08 Tel: + 33 (0)1 40 70 26 09 Email: nathalie.dubiez@hsbc.fr