Being the ‘ new person ‘ is not always beneficial, especially when it comes to a major life decision such as your new career as a franchisee in Canada. Not knowing about franchise finance or franchising lenders work is definitely a set back – so lets get you ‘ armed and ready ‘ with some solid info on financing your franchise.

First of all, here’s the good news – financing a franchise in Canada is certainly possible – It’s mostly done by a guy named BILL! And we’re not kidding. More about him later.

In fact though, the franchise industry is currently viewed as quite healthy as lenders feel that the concept of proven business models and branding of your franchise are great steps to opening what ultimately is a ‘ start up ‘ business. Clearly we all agree a franchise ‘ start up ‘ is steps ahead of opening up your own business and ‘ taking a chance’.

So, can you get a ‘ standard’ bank loan to complete your franchise finance? We don’t want to be too sarcastic here, but the answer is, yes, if you have a million dollars net worth, pristine credit, and some outside collateral and guarantee ability. So what we are saying, putting that sarcasm aside, is that conventional lending doesn’t really work if you’re a new franchisee seeking an independent business opportunity financing.

So, that brings us to our friend BIll, remember we told you he finances most of the franchises in Canada. Clearly a popular guy, as he finances millions of dollars of franchises. Our clients want to immediately get to know this Bill guy. So, who is Bill?

Actually we have spelled his name wrong, its BIL, because that is the name of the government sponsored loan programme in Canada (in the U.S. it’s called the SBA loan) that funds most franchisees in Canada.

How can one program be so popular? It’s simply because it’s well suited to what you are trying to accomplish. It provides great rates, terms and structures, limited personal guarantees, and requires what we in our firm call a reasonable or decent personal credit history. I.E. You don’t need that million dollar net worth we spoke of earlier?

So how do you achieve franchise finance success with franchising lenders on the BIL loan? Again, pardon our humor, but investigate the Boy Scout motto – Be Prepared!

The essence of approval for your franchisee venture for franchising lenders under a BIL loan is a crisp business plan, a financial projection that makes sense, and various back up documents as required by the program. Naturally you also need assistance in determining who offers this loan program, how it can be sometime augmented with other financing, and it sure helps if you present it professionally and properly.

So, we always try to have a bottom line, and in this cases its pretty simple – investigate the BIL program, do your homework, identify key requirements, and, if you are challenged by any of the above seek a trusted, credible, and experienced Canadian business financing advisor who can help you achieve franchisee franchise finance success with the right franchising lenders for your BIL. And, by the way, congratulations on your new role as a Canadian entrepreneur!

Franchise financing is an integral part of the Canadian entrepreneur’s challenge of obtaining and building a success Canadian franchise. As most Canadian business owners quickly discover, franchisors do not provide direct or indirect financing in the Canadian marketplace. This leaves the business owner essentially on his or her own to generate the capital they need from chartered banks, finance firms, and other institutions.

It goes without saying that the budding entrepreneur needs to first make a significant investment in general franchise knowledge – i.e. the pros and cons, as well as of course focusing on financing the franchise.

Franchises in Canada are product and service related. When you purchase the franchise you should have strong level of confidence that the concept is proven and successful, as you will be trying to replicate that success based on the products, services and brand awareness of the franchisor.

Franchisees are encouraged to do a proper level of due diligence based on that availability of information with respect to the business success of the franchisor. If you are considered a franchise that is owned and run by a large well know public company – think McDonalds! You of course have the ability to carefully review the financial statements and management commentary that is available to anyone by virtue of the companies listing on the public stock exchanges.

The good news about franchise financing and the risk that the business entrepreneur takes is that there is a significant amount of disclosure required by law to you as a franchisee. In Canada, as well as the United States you should have the ability to get a copy of the franchisors financial statements. If you don’t feel qualified to read and interpret a financial statement you should use the services of a trusted franchise financing advisor, or even your accountant or lawyer would be good choices.

Many franchisors in Canada will of course gladly give your franchisee references, and you should clearly talk to other franchisees about financial performance with respect to what you hope to achieve based on your personal investment and borrowed funds. When we say ‘ financial performance ‘ we of course mean general business basics such as sales, profits, working capital challenges, leverage ( how much debt do you need to take on ), etc.

In financing a franchise you clearly want to understand how much debt you are going to take on – this is also directly commensurate with what you need to put into the business as your own investment. Most business owners today fully realize that a franchise can never be 100% OPM. OPM= Other Peoples Money!

Our experience in Canadian franchise financing is that the financing of your newly acquired business has is a combination of your own investment, as well as borrowed funds. Franchise financing success in Canada is most commonly achieved by your utilization of the CSBF program, which is one of Canada’s best programs for small and medium sized business. This program provides up to 90% financing of leaseholds and fixed assets. When our firm structures a franchise financing we supplement the CSBF program with a combination, as required, of lease financing, and in some cases a cash term loan if in fact that is required.

In summary, by carefully selecting your franchisor, understanding your overall financial risk, and carefully putting together a financing package that fits your needs, you will have a very strong chance of being successful in your franchise venture.

Clients who are contemplating purchasing a new or existing franchise in Canada are always asking how financing a franchise works in Canada. The Canadian franchise industry is of course huge and covers almost every type of business in Canada. Certainly the majority of franchises seem to be in the Hospitality and QSR (Quick Service Restaurant) industry, but in actuality every type of business has some sort of franchise model attached to it. The franchise concept is many an entrepreneurs’ answer to the Canadian dream of growth and profits through business ownership and self employment.

It should not come as a surprise to Canadian entrepreneurs that there is no one single option of solution for financing a franchise in Canada. The reality is that a number of possibilities exist, and in some cases you must use a combination of these sources to complete the financing successfully.

The main source of financing in Canada for franchising is a government ‘subsidized’ and ‘guaranteed ‘loan from the Federal government. The program has two names, the CSBFL, and the BIL. These are acronyms for the government’s formal name for the program.

We firmly believe that this is the best program, bar none, for rates, terms, and loan structures in Canada. While the program is available and applicable to all Canadian businesses the majority of businesses in Canada that are franchised fall under this program.

That’s the good news, the less than good news is that in many cases you cannot totally complete your business franchise purchase with this loan financing on it own. Why is that? Simply because the program is structured and has limitations on what can be financed.

What can be financed under this program? The answer is 3 items only-

Equipment
Leaseholds
Real Estate

So if your acquisition of a new franchise involves anything other than these three items additional financing sources are needed. Those additional financing sources tend to come from your own personal resources, other structured term loans, and in some cases a vendor take back from either the franchisee you are buying the existing business from, or potentially the franchisor itself. Don’t focus too much on the latter because in case you haven’t guessed by now, franchisors or master franchisors are interested in selling you a franchise so they can build another franchise unit into their network! They aren’t in the finance business per se.

The benefits of the franchise loan structure of the BIL/CSBFL program are significant. For a starter they carry only a 25% personal liability, and secondly the rates (3% over prime) (In 2010 Canadian primes continues to be very low!) are excellent. Under the spirit of the program the loan finances 90% of your eligible expenses. But don’t think that only a 10% equity or personal investment by yourself is going to get you approved. You should in general be thinking of anywhere between 25%+ as your own personal contribution to the business.

In summary, financing a franchise in Canada is a unique specialty type of financing. You don’t want to do it wrong the first time and endanger your prospects of success by poor planning and mis information. Speak to a trusted business financing advisor who has credibility, experience and background in this area of Canadian business financing. With proper planning and assistance you will be on our way to achieve the Canadian dream of business ownership through the franchise model.

If you are an entrepreneur looking to start a new business, you may find that franchising is a viable option. This is because it comes with a lower risk of failure than other forms of business that are started independently. Also, most franchisors have an established base of customers and a recognized brand name. This ensures that the franchisees enjoy some brand recognition from the outset too. These are some reasons in favor of starting a franchise. To guide you through the process of obtaining a permit to open a franchise, the services of a Toronto franchise lawyer are essential. Here are a few basic aspects that you should be aware of when before a franchise:

Know how a franchise functions

Franchises are business systems in which the franchisor (company) permits the franchisee (independent operator) to distribute and sell its services and products with its trademark. To purchase the franchise, franchisees have to establish a contractual agreement with the franchisors. This agreement contains terms and conditions which have to be signed by the franchisee. These are largely binding. Therefore, it is important that the franchisee understand these terms before signing them. A Toronto franchise lawyer will be able to help the franchisee with this and ensure that the terms are fair. The franchisee then has to pay the franchisor a royalty fee and a percentage of monthly earnings.

Understand how you benefit from the franchise

Starting a franchise has numerous benefits to it. Firstly, it is relatively more affordable as a start up business than other independent businesses. Secondly, it affords better and quicker opportunities for expansion. Thirdly, it allows franchisees to achieve key goals for their business. Fourthly, it offers round the clock support on various issues. Some of them may be regarding: accounting, advertising and management. Fifthly, the products and services marketed by the franchisee will be those that have been tested and researched in the market. It is important to understand how you stand to benefit from opening a franchise and whether it is worth your investment.

What should be considered prior to buying the franchise

A crucial aspect that influences the success of a franchise is its nature. As an entrepreneur you may wish to start a franchise in an industry that you are familiar or comfortable with. Consider the franchise’s location and whether it will be conducive to bringing in customers. Inquire whether other franchisees have businesses in the same locality where you plan to set up shop. If they do, then it can reduce the customer base for all franchises involved. The costs involved in setting up the franchise and assistance in this regard from the franchisor (if any) is another aspect that will have to be looked at.

Another crucial aspect is the success rate of other franchises. If they have enjoyed good sales and have a loyal customer base, then your chances of succeeding with the franchise will be high. Once you are confident about opening a franchise, ensure that you hire the services of a reliable and experienced Toronto franchise lawyer.

Perhaps the idea of taking up a franchise business has always held a great deal of appeal for you. While it is true that it is a very attractive business proposition and offers greater opportunities for growth than an independently owned venture, you’ll definitely be wrong in thinking that it’s going to require very little effort. Of course, the services of a Toronto franchise lawyer and the support of your franchisor will go a long way in helping you succeed.

However, there is a lot of hard work involved in setting up the new franchise venture. Before you actually find a franchise that suits you and sign the contract, you have to make certain important decisions, one of the most important being ‘how can you tell if a franchise opportunity will be right for you?’ Here are some guidelines to help you find your feet.

What are your innate skills and experiences that you can use for the franchise?

Are you a good administrator or do you have a natural talent for sales? This information will be invaluable in helping you zero in on the most suitable type of franchise for you, ranging from the retail concept to business services. Also understand what is your motivation behind purchasing the franchise.

The answers to these questions will help you get a handle on which type of franchise will be suitable. Once you have determined this you can start searching for opportunities in your areas of interest. You can also pin down your choices further by asking yourself how much time you can devote to the business. For instance, you may be just looking for an investment opportunity and do not want to give up your day job just as yet. In this case, you can opt for a franchise venture that allows a passive form of ownership.

What is the budget you need to start a franchise?

Invest in a franchise that is within your established budget. It’s best to keep it slightly lower so that you have a reserve in an emergency situation. At the same time remember that cheap is almost never best. Also explore financing options if you are open to this possibility.

Find out when the next Franchise Discovery Day is

This is organized in order to enable prospective franchisees to meet franchisors and find out more about the franchise industry and opportunities. It gives franchise candidates the opportunity to get a feel of how such a venture actually works and also introduces them to the individuals who will support them if they were to join a franchise system.

Look at the Franchise Disclosure Document

Go through the various sections of the document with a fine-toothed comb, especially those on the history of the parent company, employees, and litigation history. Utilize the services of a Toronto franchise lawyer to help you out. Finally examine details on training and support offered as well as fees.

Note if there is a protected territory offered. A franchise in a protected territory will not have to compete with another franchise in the same vicinity. Sit down with a Toronto franchise lawyer and compare the shortlisted franchise agreements. You are now in a position to decide and finally purchase a franchise that is best suited to your profile.

Closing costs are added factors which must be considered when determining the cost of a home. These comprise of appraisal of the property, home inspection, lender’s fees, realtor commissions, and documentation fees. Taxes, such as the Harmonized Sales Tax that is scheduled to take effect in July 2010, are causing some trepidation among many in the real estate industry in Toronto.

The HST is designed to meld the GST, presently at 5%, with the PST, that sits at at 8%, and will be tacked on to not just to the purchase price of new properties, but also the closing expenses of both new and resale properties. This will remove the current exemption from the PST for new home sales. The Ministry of Revenue has released new documentation regarding the HST, specifically addressing a proposed rebate of 75% of the provincial portion of the new unified sales tax, up to a limit of $24,000. This rebate could be received either at the time of purchase, or, as is presently the case with the GST, through submitting a form to the Canada Revenue Agency.

Once a budget has been decided and a target purchase price calculated, the purchaser must decide on the type of real estate desired. There are pros and cons to both single family homes and condos or townhomes, and the good and bad of each needs to be be taken into account in order to make an educated decision before a purchase is entered into.

First, the purchaser should take into account value for money. Usually, a house will have larger equity in the future, and a greater resale value. Lease rates are generally greater for homes than condos. Also, condos have association fees. Therefore, homes may translate into a larger return on investment than condos.

Also, the purchaser should think about the area he or she wishes to live. Downtown Toronto may have a lack of available houses, but a ton of condos.

A final point to take into account is the investment of time on property repairs. In a house, the maintenance and repairs are the sole duty of the owner. In a condominium, the building maintenance is largely, if not entirely, the duty of the corporation.

Many renowned Canadian real estate companies such as ReMax, have started keeping tap of them. Resilience shown by this market is incredible. The property market in Toronto mainly operates based on the population influx. More number of condos, family home and flats are being built in major areas to absorb the growth of population and fulfill the demand of shelter. This is most mature market in Canada. Investment in condominiums has been most efficient in generating best return on investments. The factors such as inflation, interest rates, unemployment, and GDP growth are min factors that determine the growth of real estate. Despite of sick condition in all the mentioned factors Toronto property market has noticed growth of seven percent. Thus, if you are an investor, then check your requirements and get looking for the properties to live in and have better returns in future.

Canada has record in drawing more number of wealthy expatriates who move after retirement and purchase home in major premises of Toronto. Thus, the houses in blooming Toronto real estate market get the right and required worth from wealthy people.

There have been serious problems faced by people with increase of mortgage rates. The finance providing firms have offered flexible loan schemes, which enable the investor to renegotiate on terms of you mortgage. It protects the investors at the time of soaring rates that can cause unmanageable mortgage payments.

For the time being, it can be expected that this would become stronger by the end of year 2010. The Canadian dollar has not been hitting parity and latest land tax transfer policies would not be slowing the Toronto real estate markets. Thus, barring some unknown disasters it can prove to be good investment for the real estate dollars.

Another factor associated to it are the foreign investments. Big business typhoons such as Donald trump are showing interest in Toronto real estates. Many international investors from Arabian countries too are investing in Toronto real estate.

Corporate entertainment events are those events which a company or organization hold for their clients, staff or shareholders; it is a good way in cementing business relations. They can be for a large audience like conventions or smaller ones like retreats. Many corporate events in Toronto usually happen once or twice in a year.

Most companies go to extreme lengths to make these events as memorable as possible. There are different ways that can be employed to make an event successful.

The most common are where companies hire event organizers or corporate booking agencies. Companies mostly hire a whole agency that covers all the things that can make a corporate event successful, ceremonious, while others choose to hire individuals rather than a whole agency, which they most likely, cannot do without other activities, depending on the event size and the sponsors’ objective. Most agencies in Toronto cover aspects like food, sports and games, hotel bookings and so on. When a company hires an individual to cover their event, they mostly go for comedians or a DJ who can also double up as a Master of Ceremony (MC).

DJ’s are especially the most common sort after ‘commodities’ in corporate entertainment events in Toronto. Most companies hire the services of a good DJ who doubles up as an MC who can keep the crowd alive. A good DJ reads the mood of the audience and can know when the crowd is low or up-beat. Most Toronto DJ’s have websites so that companies can get them easily and even make payments through the internet.

Even if a company is holding a team building event, it has become increasingly important to hire a DJ to judge the mood of the audience. Like most other event agencies, the services of a DJ should be hired in advance, with a down payment, so as not to collide with another event that the DJ may have, to agree on the price and to also prepare adequately. A company that goes for an event agency has many choices to look at. Most of these agencies offer sporting facilities like a golf course, bowling alley, a soccer pitch and others.

If the event is lasting for a weekend, these can be good as one will play one sport for one day and the next day another sport. There can also be an event whereby a corporate member or a client or a shareholder, can come with his or her family members where there is a special location for children to engage in their own fun and games. Corporate entertainment has proved to be a lucrative business in Toronto.

Corporate entertainment events have been on the rise in recent days with some of the agencies offering corporate entertainment services also offering wedding and birthday parties. So whether it is an agency running a corporate function, or individuals like comedians and DJ’s, there should be the need to stress that the event should be as vibrant as possible, with as few hitches as possible.

Whether you are investing in a luxury downtown condo, apartment or home for your family, the Toronto real estate market provides investment opportunities for everyone. The Toronto real estate market is the most popular housing market in Canada. If you decide to buy a home in Toronto rest assured that you will be living in a city that has world class amenities, services, facilities and entertainment.

Toronto’s real estate market and availability is ultimately based on demographics: there has been an influx of over a million new people to the Greater Toronto Area over the last decade and there is still a massive shortfall of housing to meet the demand of these new residents.

Furthermore, the sub prime market crisis in the United States has many home buyers wondering what the affect will be on housing markets in Canada, opening the door to uncertainty and speculation on the Canadian market. The good news for Canadians is that the housing market has been setting records for volume and units sold for five consecutive years now despite the problems coming to light in the US.

“The statistics show just how dynamic the Canadian housing market was in 2007 in virtually all parts of the country,” said Ann Bosley, president of CREA. Historical analysis of the Toronto market in particular shows that real estate for the city, despite occasional dips, continues to do well. Take the Toronto real estate luxury market as an example with house sales in the million dollars plus range across the Greater Toronto Area (GTA) increasing by more than 20% in 2007 over the 2006 figures.

A thriving Canadian economy has many suburban dwellers leaving the burbs behind to move back into the cities. If you fall into this category, when searching for Toronto homes or condos for sale, you will need to collect information about the different areas of the downtown core to determine if you are looking in a “buyer’s market” or a “seller’s market”. Intense market competition ensures that pricing cannot be raised artificially, so the people buying homes and condos are mostly families or the downtown workforce, not speculative investors.

Not only is the Toronto housing market doing well, but newly constructed toronto condos are also in very high demand. With each passing year, Toronto condos are becoming a bigger part of total Toronto real estate market. Exciting new homes and condos are being constructed in areas like Eglinton / Yonge and King St. / Bathurst that offer residents access to the excitement of downtown Toronto while still being in a calm, clean and safe area. The most popular areas to invest are projects along the subway, close to downtown and at key intersections along the Yonge – Bloor corridors.

The Toronto condo market is an excellent alternative to home ownership particularly if you are a first time property buyer or looking to downsize your current investment. The ever increasing cost of a home in today’s Toronto real estate market is making it very hard for a large percentage of the population to become home owners. Condos also represent sound Toronto real estate rental investments allowing would be owners to increase the value of their equity. Most home buyers want to get good value for their money while at the same time getting a property that is in an area geographically that they are comfortable with.

If and when you do decide to invest in the Toronto real estate market make sure to secure the services of a professional real estate lawyer. In any real estate transaction a real estate lawyer will handle; the deed, the bill of sale, mortgage arrangements, promissory note, title commitment and the closing statements on your behalf. Getting a good interest rate on your mortgage is also crucial to being able to afford your investment and avoiding foreclosure.

There are many stories in the news recently about small towns in the United States that are full of new homeowners that are not able to afford the mortgages for their new homes and are losing money in their investment due to the sub prime crisis. While this situation may be an unhappy one for the people involved, buying in an urban market such as Toronto can help to mitigate problems by offering increased investment flexibility. Whether you would like to purchase a new family home, commercial real estate for your business or a luxury condo, Toronto can provide you with numerous options to choose from.

The city of Toronto and its neighboring areas have a garbage program that works for most people who live there. Toronto waste management is a program that finds various ways to handle garbage for residence and businesses. They also operate a recycling program that helps to combat the amount of garbage and waste that collects.

Markham recycle operates a program that works with homeowners and their blue bin waste. People are given blue bins to use for their bottles, plastic and cardboard. These bins are collected every week on the same day. People are encouraged to use them for different reasons. There are rules in place that help homeowners use the blue system.

Many garbage programs have rules about the amount of black garbage bags that are allowed on the curb. These bags are limited to encourage people to find other ways to dispose of their items. When a family usually uses a certain amount of bags a week, they may have to find ways to recycle their belongings and are encouraged to do so.

Another way that many communities are trying to promote the use of the recycling bins, is that pick up days for garbage have been changed. Instead of offering a weekly pick up route, people now have to wait two weeks before they receive a black bag pick up. That means homeowners have to be resourceful with their items so that it does not sit around and rot in the garage.

The waste management Richmond Hill area, uses the combination of the green and blue bins to eliminate needless garbage. The green bin is for all food related products which also includes paper towel and coffee filters. The green bins are available to hold many different kinds of bottles, cans and cardboard products.

Many homeowners will have a few different blue bins out, a green bin along with several bags of black garbage bags. The combination of all items sitting at the curb is a true reflection as to the way recycling York Region is working. Markham recycle manages a similar program with everyone working together to encourage the production of less wasteful items.

In the past there were no rules when it came to disposing of household items. People could put as many bags on the curb as they needed to and they could do it every week. Homeowners would place food along with bottles and plastic in with the regular garbage. Now however, there are many systems in place that promote the use of better waste disposal.

Toronto waste management is an effective combination of programs and services. The changes that have occurred over time have impacted the way the people view disposing garbage and manage their own household waste. Even business owners are feeling the impact of the changes. They are now placing blue bins outside of their stores and venues, hoping that customers use them instead of the typical garbage bin sitting next to it. With so many programs in place, it can be helpful for the environment and the system, to manage disposable garbage in a more effective manner. Recycled products can be turned into useful things and there is less products left over for garbage pick up.