Attending the Restaurant Finance & Development Conference earlier this month I was struck by the energy around deals. There was plenty of money to borrow.
The question that struck me – Is it a good time for your Franchisee’s to borrow? You may be able to get money for a new initiative/renovation/rebranding, but do the franchisees have the capacity to take on new debt or weather a transition in menu/positioning/etc. Have they borrowed on their own and are still paying for the renovation from 24 months ago?
If you are not getting full financial statement from your locations, you may not know their debt capacity.