The Melting Pot Franchise Finance – Path to Grow Program
Do you have restaurant management experience but not the financial capital needed to buy your own restaurant? The Melting Pot has developed a financing solution called the Path to Grow Program which provides the financing to the Buyer who has been approved to acquire an existing unit as the Operating Franchisee.
In the Path to Grow Program, The Melting Pot forms a partnership with you as the prospective franchisee to buy the location and will own 100 percent of the partnership. The Melting Pot will then load 70 percent of the acquisition cost for the location. The four-year loan has an interest rate of 2.5 points over LIBOR. The Melting Pot will also contribute 15 to 25 percent of the acquisition cost as an initial cash contribution, with the prospective franchisee contributing the remaining 5 to 15 percent as an initial cash contribution. The partnership company that runs the restaurant will repay the loan. Once the loan is paid off, the operator will then simply repay the amount The Melting Pot paid in cash contribution.
Path to Grow Program Benefits to any Operator
- Discount on upfront cash needed
- Access to capital without having to work with a traditional lender
- Expedited lending approval
- TMPRI has a vested interest in the new Corporation being successful as we have “skin in the game”
- Operating Franchisee gets 100% of the increase in value to the unit and ownership upfront
The Melting Pot will evaluate each opportunity on a case by case basis and reserves sole determination on whether it will fund a purchase transaction through the Path to Grow Program.
The acquisition cost of an existing restaurant can vary greatly by location, based on unit’s cash flow.
Note – Path to Grow Program does not apply to new construction or relocation, there must be a wholesale change in ownership.