A brand new consolidated retail service is launching to link franchisors, franchisees, landlords and lenders.
BDC Partners aims to be a one-stop-shop with the capability to take a retail or franchise business from concept to exit.
The new partnership harnesses the talents of BDC Property Partners’ Jon Sully, Bruce McFarlane at BlueRock, and former Salts of the Earth franchisor David Lindsay.
Where there is a gap in the concept-to-exit journey of a franchise, the partners will link with other niche firms such as business development to provide a service under the BDC Partners banner.
McFarlane said the new partnership sets out to solve the major issues franchising faces in order to fulfil its potential, namely location, recruitment and affordable finance.
“Our services are all underpinned by joint ventures with data-backed insight from location mapping software Gap Maps, Associated Projects shopfitters and Blue Rock accounting, finance, insurance and legal firm,” he explained.
Finance solutions will be part of the deal, with BlueRock Finance looking to structure loans for accredited franchise groups.
“In addition, BDC Partners will use FRANdata’s independent auditing to rate and provide transparency to potential franchisees and lenders. This service will offer valuable insights that help take much of the guesswork out of franchise selection and expansion,” said McFarlane.
Franchise re-sales will be another focal point for the group.
Jon Sully told Inside Franchise Business Executive, “Any time you sell you get franchise sales growth. It is imperative there is a slick process [for resales], it is notoriously left up to franchisees.”
David Lindsay, partner and head of franchise recruitment, BDC Partners, said incoming franchisees need a good understanding of the business model they are investing in.
Lindsay believes transparency is crucial to smart franchise recruitment.
“A good franchisor will be transparent about unit economics, returns, and profitability,” he told said.
BDC Partners will reinvest fees to get brands rated with FRANdata, he said, to improve their profile with lenders.
Clients will pay a retainer for recruitment services; fees for other services will be negotiated.
“Our mission is simple: to execute on the vision of retailers and franchises, and to provide first-class support when systems and brands are contending with COVID-constrained resourcing,” said Lindsay.
While BDC Partners will work with both retail and franchise clients, it is expected franchising will initially be a larger share of the business.
Jon Sully, partner and founder, BDC Partners, said, “Right now franchisors are under cash-flow pressure, and many do not have the marketing budget to locate and recruit the right franchisees to expand their business.
“This is particularly the case in Victoria right now with the second COVID-19 shutdown.
“Similarly, franchisees may not have the resources to choose the right franchise business or obtain the cash-flow required to start up. Because of COVID-19, the franchise sector needs more support than ever,” said Sully.
