Frequently Asked Questions
- Open – once listed and not ‘Pending’, ‘Reviewing’ or ‘Closed’ the status is ‘Open’.
- Reviewing– If a Lender/Broker has made an Expression of Interest (EOI), but not yet Accepted the Listing, the status should change to Reviewing.
- Pending – once a Lender/Broker Accepts an Listing the status becomes ‘Pending’.
- Closed – an Listing becomes closed upon certain triggers (either automatically or manually) as below.
- Lender/Broker confirming the Listing has become Filled or Unfilled; or
- The Listing lister (franchisor or franchisee) confirms it is either Filled or Unfilled; or
- After 30 days of being listed, so long as it is ‘Open’ status on or after that 30th day; or
- After being allocated and then Rejected or lapses three times; or
- When changed to that status by the Administrator.
There are a few excellent reasons why:
1. Our Advising Financiers will be paid commissions by any lender their client uses. This means the lenders are paying for them to be part of the transaction, but the Advisers are independent of those lenders. Because they represent you or your franchisee, and they want your network’s repeat business, they are gong to give the best, unbiased and impartial advice professionally possible. How many bank employees are likely to be unbiased or impartial.
2. A bank employee is paid to assess your application whether you get financed or not, not to assist you to compile the application correctly. Your Advising Financier gets paid when you get the finance, it is in their self-interest to assist you to compile the best finance application and get the finance as quickly as possible.
3. Market registered Advising Financiers are kept informed of all things franchise finance related, so they will know which lender is suitable, what that lender requires and the best terms to expect.
4. The Market is an important and growing source of business for Advising Financiers, but they are independent of us as well. The Market performs a quality management function of determining who is a fit and proper Advising Financier. If you think an Adviser is not providing professional services in an unbiased and impartial manner you only need advise us and we will review their membership of the Market.
No. It is just as relevant whether they are going to their current bank, a new lender, refinancing existing debt, any time they are dealing with their finance they should be using the professionalism of an Advising Financier.
When you consider those Advisers are trained, have years of finance experience, deal in this market every day and are paid by the lenders you have to wonder “why not use them every time”. Besides unlike when dealing with a bank when you use an Adviser the anonymous data is being collected for use in your business and for the entire franchise sector.
1. Save your business the time and money involved in providing support to your franchisees seeking finance;
2. Nevey have to tell your franchisees that they are alone in seeking the best finance solution;
3. Save your franchisees time and money chasing finance, improve their success rates and get them focused back on making money for themselves, and ultimately you;
4. Access the management tools the Market will provide; and
5. Participate in improving finance to the sector.
1. Register franchisees – this can be done in any of the following ways:
a. They self-register; or
b. From your User Panel by going to the “Register Franchisee” tab:
i. We can register them if you download the simple excel spreadsheet, fill in the basic details and email it back to us; or
ii. You can register a single franchisee or hundreds at the same time.
2. Our system will send your newly registered franchisees their account details.
3. As soon as your franchisee goes to their User Panel they can select the “Opportunity Listing” tab and put up the finance details they seek.
Over 100 registered Advising Financiers will be notified of the listing and will swing into action. This demo of the Listing Process will explain everything else.
The alternative is to go and compare a range of lenders, but even then most people will only look between the same four banks. All of this takes up valuable time and keeps your most important resource from doing the business you need to be doing.
The Market has gather Australia’s biggest and best network of commercial and consumer accredited finance brokers. These brokers are all franchise lending experienced. They know:
1. Which lenders (not just the 4 majors) provide franchise finance;
2. What are the best current finance terms you can expect;
3. Who at that lender to talk to;
4. The best way to package your total finance need, which might be across a complex range of financial products; and
3. How to compile your application to get the finance.
All of this saves you time and money while maximising your success rate.
Furthermore, you will be participating in Australia’s only dedicated franchise financing market, whose third purpose is “To assist in improving franchise sector finance“. This objective can be achieved by centralising as much of the sector’s finance transactions as possible through a single market and data collection point.
As such, by working with the Market today you are doing more to improve your access to and terms of your finance in the future.
By being registered you will be participating in Australia’s only dedicated franchise financing market, whose third purpose is “To assist in improving franchise sector finance“. This objective can be achieved by centralising as much of the sector’s numbers and finance transactions as possible through a single market and data collection point.
As such, by registering with the Market today you are doing more to improve your access to and terms of your finance in the future.
We are always interested in adding new high-quality franchise systems and it costs them nothing to register or use the Market. Tell us the franchisor you are interested in, at the same time let them know, and we will discuss with them about becoming a registered Franchise System.
A listing that is withdrawn shall be handled in the same manner as a change to the ‘Closed’ status.
If I had the space I would put “Professional Finance Advice and Placement Agents”, which of course is simply descriptive of what a professional finance broker does.
However, for our franchise sector SME clients we want to emphasise that our members hold and are striving for a level of professionalism above others, particularaly regarding franchise financing.
Furthermore, when we used the term “finance broker” or “mortgage broker” franchisors immediately assumed the Market’s proposition is only for new or refinancing franchisees that cannot get the finance from their bank. But the Market’s proposition is that every single one of their franchisees, and themselves, will benefit from having a professional involved in both a technical and administrative advisory capacity as well as a placement agent capacity for every finance related transaction, whether using their bank, the franchisors preferred lender (category A & B franchises in particular) or a new lender.
Thus the need to differentiate the role.
The referral you have been allocated has two buttons on the right, “Complete” to finalise the referral; or “Full Listing Details” where you can get the lister’s full details, make contact and get started on the work.
Our system immediately calculates the Success Fee (if finance was received by the lister) which the adviser pays. There are no clawback provisions.
We will review these numbers periodically.
advisers making an EOI changes the status on the listing on the Noticeboard to ‘Reviewing’.
When a Listing is made an email is sent to advisers for whom the interest areas are matched, such notice having a link to the Listing so that they may make an EOI.
Each adviser may change their interest areas (filters) from their panel.
The best way to gain lister attention is to quickly assess and make EOIs as they become available and to ensure the profile presented to Listers maximises the likelihood of selection.
* Except where a adviser is the Introducer of a franchise.
1. Registered advisers make an EOI by selecting the EOI button for that Listing on its Listing;
2. They go onto a waiting list;
3. The first adviser on the waiting list entitled to receive the referral/allocation shall be given two days to Review the details and either Accept or Reject the allocation;
4. If the adviser;
a. Accepts the allocation by selecting Accept on their adviser panel the listing shall be changed on the Noticeboard, Franchisor and Franchisee (if applicable) profiles to ‘Pending’. The adviser is sent a link to the full Listing Listing details page (which shall include an email link to the lister);
b. Rejects the allocation by selecting Reject on their adviser panel the listing shall be changed on the Noticeboard, Franchisor and Franchisee (if applicable) profiles back to ‘Open’;
c. Takes no action within 48 hours of the allocation that allocation shall lapse, therefore, be removed from that advisers panel and be changed on the Noticeboard, Franchisor and Franchisee (if applicable) profiles back to ‘Open’.
5. If the Listing goes back to Open the next adviser on the waiting list shall be notified that it is again Open and they have 24 hrs to Accept or Reject the allocation;
6. The same process may occur a third time;
7. If the allocation is Rejected or lapses the third time it changes to ‘Closed’ status.
Priority access is relevant for the formation of an EOI waiting list during the first hour of an Listing’s listing. It means if they make an EOI in the first hour of an Listing’s listing all priority access EOIs are listed on time priority ahead of non-priority access EOIs (who will have already used their priority access allocations for the month).
• First Hour of Listing – the first adviser with priority access rights shall be granted the allocation. All advisers with Priority access rights that made an EOI in the first hour are moved ahead of non-priority access EOIs made during that hour;
• After First Hour of Listing – The ‘waiting list’ solidifies at that point and then all subsequent EOIs are added on a simple first come basis.
A priority access entitlement is used for each Listing allocation given to that adviser during that month, regardless of whether they were the first or subsequent allocation for an Listing.
If an Listing changes from ‘Reviewing’ or ‘Pending’ back to ‘Open’ the original waiting list shall be used to notify the next EOI, etc.
Additional EOIs can be made whenever an Listing is in the ‘Open’ status.
Priority access entitlements renew on the first day of each month.
Unused priority access entitlements do not carry forward or accrue.
Making a referral does not remove the obligation to declare the full details of all finance provided to the Lister, including that facilitated by a referred party, or pay the applicable Success Fee/s.
1. Broadly spread market (geographically, industry);
2. Having the sector expertise;
3. Gaining access to the right businesses; and
4. Having the distribution network to place and service finance to the sector.
By centralising as much of the franchise finance market as practicable through a single market increases the effectiveness of developing financial products for and promoting to the sector, therefore also substantially lowering costs.
The Market will be using the data it gathers from all it’s sector transactions to develop risk assessment and management tools lender clients will be able to utilise.
The Market will deliver some of Australia’s best know and performing franchise brands. Our role is work with and for franchise networks to enhance their finance solutions, becoming the single location for you to access Australia’s broadest collection of franchise networks.
As the market provider another important role we fill is in gathering and maintaining Australia’s largest and best network of commercial and consumer accredited finance brokers experienced in franchise lending. We will be working to assist our broker network to improve their franchise lending skills and streamline the process.
The Franchise Finance Market specialises in franchise lending only. We develop the missing elements you need to starting accessing this profitable business sector. By doing this across as many franchise networks, experienced finance brokers and willing lenders as possible we are able spread the costs.