According to the 2011 International Franchise Association (IFA) Credit Survey, franchisors report that more than 50 percent of their franchisees and franchise prospects are still unable to obtain needed financing to open their own business, even with the economy on the mend. Shane’s Rib Shack, a Petrus Brands concept and national barbecue chain, brought in former Church’s CFO, Carl Jakatis, to architect a new financing program to fund franchisees in their pursuit of the ultimate American dream of business ownership. So on the eve of its 10th anniversary, Shane’s Rib Shack announces plans to add a minimum of 100 stores in the Southeast as part of its regional growth strategy before moving west to establish the first true fast casual national footprint.
Recently recognized as one of the Top 10 Franchise Deals in America, Shane’s Rib Shack has established a comprehensive financing program with The Brand Banking Company as its preferred lender. With years of experience and a full department dedicated to government-guaranteed lending such as Small Business Administration (SBA) loans, The Brand Banking Company is a full-service community bank headquartered in Georgia with a dedicated franchise practice to aid franchisors in helping franchisees as they make the steps to business ownership.
“The benefit of working with The Brand Banking Company is its expertise with SBA lending and their commitment to serving Shane’s Rib Shack franchisees who qualify for a loan,” explains Carl Jakatis, CFO of Petrus Brands. “Typically it can take months for a franchisee to go through the process of getting an SBA loan themselves. Since The Brand Banking Company understands Shane’s Rib Shack’s business model and concept, their knowledgeable experts are able to guide our franchisee through the process typically within 30-45 days.”
Franchisees often struggle when it comes to finding a lending partner that will help ease the process. The Brand Banking Company is the ideal partner since they understand that small business owners have a lot on their plate during the initial franchising stages. Sherry Kinard, Vice President and Manager of the Government Guaranteed Lending division says, “The difference between The Brand Banking Company and other financial institutions is our knowledge of the SBA program and our hands on customer service. Currently, the number one way for franchisees to secure funds is by utilizing the SBA. SBA loans offer longer terms which help with cash flow and lower down payments when compared to traditional business loans. An SBA loan through The Brand Banking Company can benefit the franchisee if they are opening their first or fifth location.”
“We feel our most promising days are ahead with an exceptional management team in place today, our financing at a point of strength and our marketing and PR partners aligned,” explains Chris Morocco, CEO of Petrus Brands. “Package all that around a dynamic founder in Shane Thompson who has the potential to be the next iconic restaurant personality and a concept whose positioning is evolving to a broader, more consumer appealing BBQ brand, and we couldn’t be more optimistic about the future.”