One well-known franchise business has been given top ratings for its credit profile in an independent bank report designed to ease franchise lending.
Leading franchise information and business intelligence specialist FRANdata has just completed an independent FUND report for all mainstream banks and lending institutions in Australia and it ranks the Poolwerx franchise system in the ‘top quintile’ of the worldwide franchising sector for its credit profile.
Poolwerx also received the highest possible ranking in categories such as ‘Franchisor – Franchisee Relationships’, ‘Recurring Revenue Self Sufficiency’, ‘System Support’ and ‘Management Experience/Stability’.
Darryn McAuliffe, CEO of FRANdata Australia, said Poolwerx achieved an impressive result on a global scale.
“Having calibrated their score (840 out of a possible 950) against hundreds of these reports in the US, FRANdata defines the Poolwerx franchise system as high performing, McAuliffe said.
“Poolwerx is the first brand to authorise the distribution of this objectively produced report to all active Australian franchise lenders, which will not only enhance their lender relationships but also promote improved finance access for franchise partners.”
CEO and founder of Poolwerx, John O’Brien, said he was pleased that the business was at the forefront of FRANdata’s independent reporting in Australia after seeing the high level of respect the organisation commanded in the US business community.
“I’ve seen for myself how an independent report from FRANdata can dramatically boost confidence in a franchisee network with lenders”.
“Making this FUND™ Report available to lenders is a simple and cost effective action we can take to improve finance access for our franchise partners.
“Sixty five percent of our growth came from multiunit ownership last financial year and this report will only make it easier for our business to grow utilising this strategy now.
“I believe this type of report will become critical to the franchise industry as it provides lenders an amazingly detailed and robust set of tools they can use in their decision-making process. It adds another safety net to help lenders avoid poorly operated franchises.”
Damian Paull, CEO of the Franchise Council of Australia, congratulated Poolwerx on this latest initiative, saying the transparent reporting method offered by FRANdata would make “credit decisions easier.”
“Poolwerx, as an early adopter of FRANdata’s FUND Report is leading the way making it easier for banks to understand the Poolwerx franchise brand creditworthiness,” Paull said.
“A key component of the report is the FUND score – a single cumulative score that measures 13 risk and performance categories across a franchise.
“It’s great to see Poolwerx utilising FRANdata to enable an independent, fact based confirmation of its most powerful asset – its performance.”