Franchise Acquisition Finance for a Multi-Unit Operator
£480,000 · 7 years · 7.75% fixed. An experienced single-unit franchise operator wanted to acquire two further franchise units from a retiring franchisee in the same national network.
The Client
Experienced single-unit franchise operator
The Challenge
An experienced single-unit franchise operator wanted to acquire two further franchise units from a retiring franchisee in the same national network. The franchisor approved the transfer but the buyer needed acquisition finance across two units simultaneously. Franchise lenders understand network covenant strength and proven unit economics.
Our Solution
Doulton placed the acquisition finance with a lender experienced in the specific franchise network, who had confidence in the brand's unit economics and the buyer's single-unit operating track record. Both units were funded under a single facility to simplify the structure.
The Outcome
Both franchise units acquired simultaneously. Combined network now generating revenue from three units. The buyer's operational systems were rolled out across the two acquired units within 90 days, improving their EBITDA to match his original unit within six months. Key highlights: Franchise network covenant strength recognised by specialist lender; Both units funded under single facility - simplified structure; Acquired units' EBITDA matched original unit within 6 months.