How Do Bowling Green, OH Franchisees Fund Equipment or a Second Unit?

Invented case: a day care franchisee in Bowling Green, OH adds a second location under the same brand. The franchisor's list calls for indoor climbers, a sanitizing dishwasher, a commercial washer and check-in tablets, quoted at $28,400, and the owner wants a 12-passenger van for school pickups at $46,900.

On equipment financing over 60 months, the equipment package at an 11.2% annual rate costs $620.32 a month and the van at 10.6% costs $1,010.39 a month, $1,630.71 together in this invented example, and the 120 payments across both agreements come to $97,842.60. The van carries the day care's own children.

Outdoor play structures are set in the ground, which makes them site work outside this site, and so is any work on the rooms themselves. County Business Patterns counted 21 child day care services establishments (NAICS 624410) with 331 paid employees in Wood County, OH for 2023; Nonemployer Statistics counted 85 child day care providers without paid employees for 2024.

A franchise agreement can name the equipment a unit must have, and sometimes the vendor. Invented case: an auto service franchisee is told to add the following at its existing shop:

• two fluid exchange machines: $12,800
• oil drain carts and fluid caddies: $2,300
• a battery tester and charging station: $1,850
• tablets for the shop software the franchise requires: $2,650

The $19,600 package on a 48-month agreement at a 12.1% annual rate costs $517.11 a month in this invented example; the 48 payments come to $24,821.28. A partner may ask for the franchisor's written requirement and the vendor quote. Whether the franchisor's approved vendor list limits where the shop buys is a matter between the franchisee and the franchisor.

A franchisee pays the franchisor out of sales before any loan payment is counted. Invented case: a unit sells $24,500 in a week, pays a 6% royalty ($1,470.00) and a 3% brand fund contribution ($735.00), $2,205.00 a week in all.

Those percentages come off the top line every week, whatever the margin. In the same invented case, the two monthly payments worked in the next section, $2,713.41 a month, equal about $626.17 a week (12 months spread over 52 weeks). Setting that weekly figure beside the royalty, the brand fund, food, wages and rent shows whether the unit's own sales carry the new payments.

This weekly view is the owner's own projection. A partner reviewing the request may look at the existing unit's bank statements and time in business.

Invented case: a franchisee running one quick-service restaurant adds a second. The franchisor charges a $30,000 fee for the new unit, training wages for the second unit's new staff come to $14,600, and the required equipment package is quoted at $118,000.

• Invented: a term loan for the fee and the training wages, $44,600 over 60 months at a 10.25% annual rate: $953.11 a month.
• Invented: equipment financing for the package with 10% down ($11,800.00), $106,200.00 financed over 84 months at a 9.95% annual rate: $1,760.30 a month.
• A working capital loan or a credit line for food orders and wages once the second unit is selling, priced separately.

Work on the space itself, such as walls, plumbing and electrical, is property work outside this site, as is buying the building. The 2023 ZIP Code Business Patterns file placed 39 limited-service restaurants at ZIP 43402 addresses.