For young franchisees in the hospitality industry, getting a loan from the bank is not easy. When banks perform a risk assessment on franchise groups, they are overly selective. Their requirements, such as unachievable levels of turnover are so strict that most young and growing franchises cannot meet them.
Graham & Denise Diamond, owners of the Outback Jacks franchise, discovered that by providing their franchisees with the Silver Chef Rent-Try-Buy Solution as an option for their equipment funding, they were able to sell more Outback Jack’s franchises easily.
With Silver Chef Rent-Try-Buy Solution, franchises and/or franchisors no longer have to come up with huge capital outlays. They are able to rent their equipment for a low weekly rental fee and retain the option to purchase at any time with 75% of the rent they have paid off the purchase price. This means that the largest barrier for potential franchisors – capital – is greatly reduced. Further, the Silver Chef Rent-Try-Buy Solution does not require a significant asset base and does not require Directors guarantees.
Silver Chef provide start-up franchisees with the flexibility that any new business requires in the first year of start-up. Businesses have the option to upgrade, which is good for start-ups who are experimenting.