Finance facility secured for franchisee as part of turnaround strategy

The Challenge

A franchisee with 20 stores across London and the South-East faced structural challenges from competitive pressure despite recent trading improvements. Following closure of four loss-making stores, the company sought a £650,000 facility to support its continued turnaround efforts. The lender required an independent review of business viability and funding requirements before committing capital.

Our Approach

Our financial advisory team delivered a comprehensive review of cash flow projections, business plan assumptions, and debt service capacity. We assessed turnaround strategy viability and assessed whether store closures were appropriate and if the remaining locations could achieve sustainable profitability. We conducted detailed investigative work to validate trading performance despite limited financial data and stress-tested equity injection assumptions.

The Outcome

Our recommendation was fully adopted by the lender, resulting in approval of the complete £650,000 facility supporting the turnaround programme. Our independent assessment positioned the franchisee as a credible operator within the bank's QSR franchise portfolio, enabling stakeholders to align on a viable forward plan.