After a decade of working with Dunkin’ Donuts and Baskin-Robbins franchise owners, Direct Capital Franchise Group (Direct Capital) is enhancing and expanding its services in ways that aim to ease your access to financing and better meet your needs. Its staff members have the direct experience and knowledge to guide and support you every step of the way, and now, as a DDIFO Sponsor, the firm is even more invested in its relationship with Dunkin’ Donuts franchisees.
Headquartered in Portsmouth, New Hampshire, Direct Capital is a national direct lender servicing the financing needs of leading franchise systems. A team of Franchise Finance Managers is trained to work specifically with Dunkin’ Donuts and Baskin-Robbins franchise owners. While the lending market continues to be tight overall, Direct Capital is financially strong–having more than $250 million available in direct lending–and remains committed and able to support your long-term financing needs.
“The market has created a situation where lenders have had to be far more selective,” said Robyn Gault, Vice President of Strategic Accounts. “Since Dunkin’ is such a strong brand and its performance has been solid throughout the recessionary period, we happily continue to lend to its franchise owners.”
Direct Capital offers financing that can support you throughout the franchise life cycle, from new store development to equipment upgrades and remodels. Working capital programs are also available.
- Equipment upgrades of $100,000 or more can be financed for single or multiple locations.
- Financing of up to $400,000 is available for qualifying remodels, typically with half of the loan amount covering equipment and half covering construction.
- For qualified existing franchise owners, new store development of up to $2 million can be financed.
- Short-term working capital loans, usually in the $30,000 to $50,000 range, can be used to boost liquidity and cover general business expenses such as inventory, labor, advertising or taxes.
To better serve its Dunkin’ Donuts clients, Direct Capital has developed express finance products that simplify and streamline the application, approval and documentation process. “Our franchise clients are benefiting from a new suite of products which allows them to secure approvals and complete documentation online. This online process helps to expedite the order processing and delivery of the equipment being financed,” Gault said.
For cases of equipment upgrades with a total cost of less than $100,000, you can submit a one-page application online or via fax, even if the upgrades involve more than one location. No additional paperwork is required, and approvals are processed the day of the application. For remodels and new store development, you can initiate the process with that same one-page application, but additional financial documentation is required. In such cases, a Franchise Finance Manager lets you know exactly what paperwork is needed. Once that documentation is received, Direct Capital makes decisions on remodels in one business day and on new stores in two business days.
The firm recently launched ClickFund™, an electronic documentation system that enables the customer to review and sign financial documents electronically through a secure website. This significantly cuts the turn-around time as compared to using a service like FedEx to courier documents back-and-forth. Direct Capital is the first lender in the equipment financing industry to offer such a service.
For multi-unit franchise owners and operators, Direct Capital has designed a master lease structure to accommodate future financing without the need for a whole new application. For example, if you finance an equipment upgrade for one of your stores now and later need to finance equipment for another store, you simply have to complete a one-page addendum. In addition, Direct Capital will consolidate all of your invoicing.
Beyond its express finance products, Direct Capital offers flexible payment options. You can opt to defer your initial financing payment for 30 to 90 days in order to allow time to stabilize or build cash flow, which can be particularly helpful in cases of remodels. You can also take advantage of seasonal payment options that allow you to reduce payments during specific months of the year.
“As the scope of our franchise products and services demonstrates, we are fully equipped to meet the wide-ranging financing needs of the Dunkin’ Donuts community,” said Gault. “The DDIFO has a strong reputation among franchise owners and we are happy to have this opportunity to expand and solidify our ongoing relationship with Dunkin’ Donuts franchisees.”