THE JOBS FUND approves grant funding for franchise partnerships
The own contribution requirement for the funding of a new outlet will be 10% of the set-up cost of the franchise, and the 90% funding will be a blend of a commercial loan and grant funding from The Jobs Fund. Although the grant is ultimately repayable, it attracts no interest and only has to be repaid once the commercial loan is paid in full, regardless of the loan term.
Apart from encouraging SME development and job creation through the low own contribution required (10%), the purpose of the grant is also to reduce the interest cost of borrowed capital and the amounts of monthly loan instalments. Virtually all established franchisors require an own cash contribution of 50% in an attempt to ensure affordable loan repayments for the franchisee. This initiative allows for exactly that, but with the benefit that only 10% is required upfront.
Existing franchisees (BEE or non-BEE) with a track record of successfully owning and managing franchised operations, who has a current manager or partner that he wishes to empower through setting up his or her own franchise, are encouraged to talk to us about the possibilities.
Enquiries can be directed to Debbie at 012 460 2345 or email firstname.lastname@example.org