Performance Capital Franchise Finance Programs


Quick Serve Restaurant (QSR) Franchise Financing Program

Loan Purpose

New store financing, existing store purchase, remodels and refinancing existing loans.
Loan Amount

Up to 70% financing of allowable costs on locations after a minimum $60,000 or 30% equity and working capital investment, whichever is greater. Loans are limited to a maximum $155,000 and are all subject to credit approval.

Guarantees
Personal guarantees of all principals or partners of BORROWER required.
Security
A first security interest in all furniture, fixtures, equipment, and franchise rights.
Terms

8 years (96 months), fully amortized. New location financing will be eligible for the first three months of payments to be interest-only to assist in new store opening cash flow.

Interest Rates

Interest rate will be fixed at 550 basis points (5.50%) above the comparable U.S. Dollar Interest Rate Swaps in effect on the date of loan closing. Payments will be determined based upon the amount funded and the fixed interest rate set at loan closing. Please call for current rate and payment quotes.

Deposit/Loan Fees

$500.00 fee due on submission of application package. Returned to Borrower if not credit approved or if Borrower does not agree to changes (if any) outlined in final loan approval. For funded transactions, $500 fee covers all origination costs, documentation costs, and UCC filing/search fees.

Prepayment

Prepayment is not allowed during the first 36 months of the loan. After the 36th month, there is no prepayment penalty fixed rate loans if U.S. Dollar Interest Rate Swaps are the same or higher than those in effect at loan closing. For every 1% decrease in the swap rates, 96 month transactions will be assessed a prepayment fee of 2.4% of the outstanding balance for prepayment during months 37-48, 1.9% during months 49-60, 1.4% during months 61-72, 1.0% during months 73-84, and 0.5% during months 85-96.

Other Items

Proposed debt service coverage ratio: minimum 1.20:1, after debt service and owner compensation based on full one year pro-forma P&L for the new site. Meets all qualifications of franchisor, including satisfactory review by franchisor of the property lease and site approval. Franchise Agreement and final executed lease must be in the name of the legal borrowing entity. Payments are to be determined at loan closing and are to be made via automated clearing house ("ACH"). Proposed locations must have population counts exceeding 45,000 within a 3-mile radius. Borrower's principals or partners must have satisfactory personal CBR reports, with no bankruptcies or government liens.