In instances where suitable candidates require development funding, typically where the financial profile and personal balance sheet of a candidate does not meet the requirement of traditional commercial banks, SA Franchise Warehouse may be able to assist with facilitating the procurement of funding.

The 2,5% loan value origination fee which SA Franchise Warehouse charges the candidate for a successful application, is not sufficient to cover the cost of the process but SA Franchise Warehouse would render this service in case there is an opportunity to be of service to the franchisee for the rendering of accounting, HR and statutory support services.

In instances where SA Franchise Warehouse procures funding on behalf of a franchisee, the application will include an assumption that SAFW will be contracted by the franchisee to render such services and for SA Franchise Warehouse to accept the obligation to report on the financial compliance and profitability of the business. This arrangement naturally assists the funder in the management of their risk and has a positive impact on their credit decision.

The detail of the services will be described in a Service Level Agreement to be concluded between SA Franchise Warehouse and the franchisee at rates agreed to prior to the application for funding and the franchisee will also be required to be a Symphony user for its accounting platform.

The VAT exclusive monthly subscription cost to a franchisee is between R 485,00 and R686,00 depending on turnover with an initial once-off set-up and configuration fee of R6000,00.

Symphony also offers a POS system integrated with the back end accounting system of the franchisee which is integrated with the franchisor’s reporting dashboard. Symphony is a cloud based platform suggesting real time information.

For understandable reasons, the facilitation of funding for franchisees will only be possible in instances where SA Franchise Warehouse has an existing working relationship with the franchisor as funders expect SA Franchise Warehouse to maintain a franchisor accreditation file on certain aspects pertaining to the business system of the franchisor.