The document discusses how franchise funding is now done through an online marketplace and fund manager. Investors like superannuation funds provide funding that is used to establish, purchase, refinance or refit franchises. Only franchises from the top two tiers of 1,160 franchise systems are eligible, and they must meet assessment criteria related to their business model, funding, and support for franchisees. Funding requests from eligible franchisees and franchisors are processed through the online portal and marketplace, with principal and interest payments going to the clearing pool of fund units held by investors.

1. How
FRANCHISE FUNDING
is now done.

2. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
INVESTOR FRANCHISEEFRANCHISOR

3. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
WHO
•Superannuation funds - $3 trillion
• Institutions – life offices, banks, others
• High Net Wealth
• Significant Investor Visa - $350m p.a.
WHY
• Good yield
• Volatility in other assets
• Improved risk model
• Supporting early-stage business

4. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
Market
1,160 Franchise
systems

5. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
Tier 1 (5%) - 58
Tier 2 (15%) -
174
Tier 3 (80%) -
928

6. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
Franchisee
Assessment 30%
•Track record
•Net asset position
•Training/education
Franchise System
Assessment 70%
•Only Tier 1 & 2
Franchisors
•Proven business
model, adequate
funding coverage
•Robust franchisee
assessment, training,
support.

7. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
Listed
Franchise
Systems
x 4
x 8
x 16
x ?

8. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
Only from
Listed Franchise Systems

9. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
FUNDING
• Establish franchise
• Purchase existing franchise
• Refinance franchise
• Refit franchise

10. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
Online Portal
www.franchisemarketplace.com.au
Fund Manager
www.elcanocapital.com.au

11. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
10 Million Clearing
Pool Units

12. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
10 Million Clearing
Pool Units
Application
$X
Funds
$X

13. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
10 Million Clearing
Pool Units
X SPV
class Units
Buys
units

14. Commercial-In-Confidence Copyright©Elcano Holdings Pty Ltd
10 Million Clearing
Pool Units
X SPV
class Units
Principal
&
Interest
Principal
&
Interest

15. For further information please contact:
Darren Lelliott (Managing Director)
Mobile: 0431 775 252 darren@elcano.com.au
www.elcano.com.au