We pre-qualify all of our clients and as a result 95% of our clients get the financing they need. You’ve read and heard that banks are not making loans — that’s not totally true. We have lenders who are actively seeking new borrowers. However these lenders require a sound business plan that is well researched and contains realistic financial projections. ANYTIME FITNESS MULTI-CLUB FINANCING Interest rates are ultra low. The prime rate in 2006 was 8.25% in 2014 it’s 3.25%. On a $250,000 7– year term loan that is an annual interest savings of $7,154! You’re a successful Anytime Fitness owner and want to open additional Clubs or purchase an existing franchisee. Or, Franchisors often want or require that you open multiple units within a specific time frame. The problem for the owner is “proving” to a lender that you can finance the additional Clubs. Most lenders will not consider financing another location unless your current location has been in operation for 12 to 18-months. Lenders focus their concern in three areas: 1. Do the current locations have a positive cash flow? 2. Will the new location stretch management too thin (do you have a solid manager for the new location)? 3. Do you have 15% cash to invest (maybe 10% if it’s your 3rd or more location) in the new location and still have “rainy-day-fund” cash for unknown contingencies? Financing your new Club may be your greatest concern. We can help you get the long-term financing you will need . BASIC REQUIREMENTS 1. You must have in cash 15% of the total amount required (maybe 10%) for the new location. We help franchisees get the money they need to open and grow their business! Veterans get a $500 discount! 2. Your current locations must have solid financial statements preferably prepared by a CPA. 3. At an absolute minimum your present locations must have a positive cash flow equal to or greater than 130% of your locations current loan and equipment lease payments. Cash flow % = (profits+amortization+depreciation divided by total loan payments and or lease payments). 4. Federal tax returns including all schedules will be required for each location and for each 20% or greater owner of the current or new locations. 5. All 20% > owners will need a credit score of 650+ and will provide a personal loan guaranty. ADDITIONAL INFORMATION ON THE REVERSE SIDE WE HELP YOU CREATE YOUR BUSINESS PLAN • Our fee for professional assistance is only $5,000. It’s paid $1,850 to start,$1,650 when your business plan package is complete, and $1,500 (or $1,000 if you are a veteran) when a lender requests your business plan package. • If your loan includes land and buildings the cost is more than $5,000. • Using our Financial Planning template, we help you to create a pro forma plan that is both realistic and that meets the lenders requirements. Our clients get financed! ANYTIME FITNESS MULTI-CLUB FINANCING page 2 FRANCHISING FACTS: Why We Are Successful (from International Franchise Association — IFA) • ►Franchise businesses are projected to grow faster than the rest of the economy In 2014. We do our own research on the fitness industry to create a business plan description that is unmatched. We incorporate Anytime Fitness’s business model into the description including footnotes. This gives the lender confidence in both the Anytime Fitness model and the industry critical elements. • ►Total Franchise sales are over $1 Trillion. Then you use our copyrighted template to provide us with specific information for your company, location, area, competition, ownership, and management. • We independently research the fitness industry using published information and/or purchased financial information from recognized industry sources to create our copyrighted 3 Year Financial Planning template. Lenders check the franchisee’s financial plan and compare it to; 1) other Anytime Fitness franchisee loans they may have financed, 2) another similar fitness business they financed, and 4) standard industry sources (the same ones we use) to determine how “valid” your financial plan really is. • When you use our Financial Planning template we help you spotlight the basics (number of members, initiation fees, security cards, sales and marketing expenses, etc.) to create your financial plan. Most business loans are rejected because of poor financial planning or planning that is too optimistic or conservative when compared to the industry. • Working with our Group you will be guided to create a realistic financial plan that meets the lender’s expectations. Our objective is help you show that your current locations are profitable and that the new location will be profitable and not deplete cash from your new location thereby jeopardizing your current locations and causing a potential loan loss. • We will help structure the loan that best meets your requirements. • Your Business Loan Package is sent by us to lenders we know are actively financing new locations. Lenders tell us it is one of the most complete loan packages they receive. Our goal is to answer nearly all of the questions a lender may have. • 95% of our Clients obtain financing. Why, because we pre-qualify all new clients to determine if we believe we can get them the financing they need. We don’t waste time, money, and mental energy if we do not believe we can get you a loan. The 5% that do not get financing do one or more of the following: 1) just stop the process, 2) did not have the cash investment required, 3) have poor credit, or 4) the current locations do not have a positive cash flow to pay their loans and or leases. ►Franchise establishments are projected to increase to 770,368 in 2014 an increase of 13.000. ►Franchise businesses are projected to create more than 193,000 new jobs in 2014 for a total of 8,450,000 franchise jobs. ►A new Franchise opens every 8 minutes of every business day. ►$1-Million of new loans to franchised businesses creates 34-new jobs creating $3.6Million of economic activity. A long-term loan provides all of the financing for the business including owner’s salary, low payments, lower effective cost, and prepayment savings. OUR CLIENTS GET FINANCED!!
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