Invest in leading franchise brands
There’s now an efficient way for you to invest in leading franchise brands that you know and trust, while earning stable fixed income returns.
Access attractive fixed income opportunities
The Franchise Funding Market enables qualified investors to access franchise debt investments, a segment previously unavailable to most investors. Loans of $100k – $1m are originated for highly-qualified entrepreneurial franchisees of successful franchise brands. Download our investor information sheet.
Earn targeted returns of 7-12%*
Our franchise loan investments target attractive fixed income returns that outperform traditional fixed income investments, with projected loss rates lower than small business loans as a whole.
Reduce risk with known brands and proven business models
Our marketplace features opportunities in high-quality franchise brands with established track records and low historical loss rates. Franchise businesses benefit from a number of factors as compared to other small businesses including proven business models, brand recognition, vetted management and locations, and franchisor support.
Spur economic activity and job growth
The franchise industry is a major driver of economic activity in Australia, employing in excess of 340,000 working Australians. Investing in franchise businesses through our marketplace provides a new source of capital to franchise entrepreneurs and helps create new growth and jobs in local communities.
Join our investor network
Sign up now to invest in new franchise funding opportunities.
|Registration & Renewal Fee||$50|
|Notified of investment opportunities by geographic area||Y|
|Notified of investment opportunities in all interest area||Y|
The Investment Thesis For Franchise Debt
Our white paper, The Franchise Sector and Your Investment Portfolio, articulates the reasons to invest in franchise funding. It explains the potential returns investors can earn, and why investing in franchise businesses may entail less risk than investing in other small businesses.
Why Franchise Debt Belongs
in Your Portfolio
|Looking for stable fixed-income investment opportunities in proven franchise brands? Watch our webinar replay to learn more.
Presented by Darren Lelliott, Managing Director
Frequently Asked Questions
Why invest in franchise businesses?
Providing funding to SME’s offers the opportunity to receive attractive returns on your investment, 7% – 10% currently. However, the risk on such investments needs to be given due consideration. SME funding is given a heavy risk weighting because of the lack of transparency in each transaction and the difficulty in exercising any security that may exist on the arrangement.
The nature of franchising means that the franchisor becomes a component of the overall investment risk because if that franchisor fails it could destroy the franchisee business.
However, it is also possible to gain significant investment benefits by including the right franchisor in a transaction, such as greater investment transparency and greater ability to mitigate investment risk.
The Franchise Marketplace only includes the best quality franchise systems and utilises its own unique investment structure, the Hybrid Capital Model, so that your attractive investment returns also come with vastly improved risk measures.
Why invest in franchisees via the Franchise Funding Market?
We make it easy for investors to efficiently participate in the focused franchisee investment asset class. Our franchisee investment opportunities target attractive fixed income returns of 7-12%, before fees and potential losses.
We bring investors opportunities in a selection of known brands with track records of stability and growth operated by highly-qualified, well trained and supported franchisees. Our rigorous proprietary underwriting process is specific to franchise funding. We rigorously analyse risk and opportunity at both the franchisor and franchisee levels across both quantitative and qualitative parameters.
What are investor fees?
There is an Entry Fee of 1% and the Franchise Marketplace’s servicing fee is calculated as 1% of the total payment amount received from the Borrower within 30 days of the payment due date. The fee is deducted from each monthly payment made to an investor, and covers the costs associated with servicing accounts and distributing payments for loans originated on our marketplace.
Who can invest on the Franchise Funding Market?
Franchise loan investments on the Franchise Marketplace are only available to qualified investors. Individual investors must be a “sophisticated” investor as defined by the Corporations Act 2001.
Individuals are “sophisticated” investors if they:
• Have individual income of $250,000 or more and have been at this level for at least the past two years, OR
• Have a net worth of $2,500,000 or more, OR
• Invest at least $500,000
Can I invest through a company, partnership, or trust?
Yes, in most cases. Please contact us at email@example.com for more information.
Can I invest using funds from my Self Managed Super Fund?
The debt securities offered by Elcano are generally compatible with superannuation trust deeds; however, you will need to confirm if your trust deed will permit this type of investment.