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  • Essay / Fanchisor Case Study - 1209

    The company's venture fund has raised $5 million privately, and Farid hopes to raise it to $10 million. So far, Edible's rental program is only available to Edible franchisees, who can get up to $100,000 to cover equipment costs. But Farid Capital Corp. could eventually expand to offer financing to the franchise industry in general, Farid says. Other chains, including Florida-based CruiseOne, offer simple loans to cover startup costs. Senior vice president and general manager Dwain Wall says his travel agency began offering new franchisees $7,300 in financing toward their $9,800 franchise fee in August. Since CruiseOne uses a home-based business model, fees typically make up the majority of the startup cost. The loan carries a prime interest rate plus 6 percent, which isn't exactly cheap, but moderate in today's lending climate. With more than 500 locations and plans to open up to 100 more in the next 12 months, Wall says it's important to help CruiseOne franchisees get started to maintain growth.