The UPS Store is aiming for expansion by setting up $22.5 million worth of loans for franchiseesto open new outlets or take over existing ones.
The largely US-based retail chain, which describes itself as “the world’s largest retail systemof shipping, postal, print, document and business services” yesterday announced a collaborationwith a franchisee-lending programme created by Franchise America Finance (FAF) and The BancorpBank.
The first franchise network in its category to receive funding through FAF and The Bancorp Bank,The UPS Store network has $15 million available for franchisees for the development of newlocations as well as an additional $7.5 million for the transfer of current centres to newowners.
“This collaboration creates a national funding source for franchisees and candidates,” saidStuart Mathis, president of Mail Boxes Etc., Inc. (MBE), franchisor of The UPS Store. “Byproviding prospective small-business owners access to start-up capital, we are able to expand ournetwork while creating jobs in communities across the country.”
Speaking on behalf of The Bancorp Bank, Arthur M. Birenbaum, executive vice president ofcommercial lending, said, “Our national effort offers the smoothest, most time-sensitive loanapproval process available today. This access to capitalisation will enable qualifiedfranchisees to build their business, their industry and an employment base to createjobs.”
“We are thrilled to have The UPS Store network as a member of our franchise lendingprogramme. The FAF programme provides custom lending solutions for franchisees in excellentfranchise systems,” said Ronald Feldman, CEO of Franchise America Finance. “Since theinception of the programme in April 2010, we have allocated more than $200 million for franchiseefinancing for our member franchise systems.”
FAF, The Bancorp Bank and MBE worked together to create the qualifications that prospectivefranchisees must meet to gain access to this pool of money.
