1. 1 Helen Hughes BA(Hons) Sector Manager, Franchise Development NatWest

2. Key points Role of the Franchise Section Key points » Maintain relationship with franchisors » Maintain information on active franchisors » Facilitate finance for both franchisees and franchisors

6. » 930 Franchisors » 22,400 Franchisees » 39,000 Franchise units » 561,000 Employed » £13.7bn Turnover » 92% of franchisees say they are profitable 2013 NatWest/BFA Survey results: 2013 NatWest/BFA Survey results: Statistics:

7. Borrowing Lending Criteria Borrowing » Finance up to 70% of the total start up costs (including any working capital) for new Franchisees » The length of a loan is typically no longer than the initial term of the franchise agreement or the premises lease ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT Security may be required. Product fees may apply. Over 18s only.

13. The Business Plan.. Suggestions: » Tailored around your own individual skills and aspirations » Allow for any future expansion plans » Benchmark actual performance against the plan » Negative trends can be spotted earlier » Your career details, assets & liabilities etc. » The franchise; what it is and how it works » Information on the marketplace / sector & the Marketing plan » The business location and details of competitors » A detailed breakdown of the start-up costs » Financial projections, a cashflow forecast, a profit and loss and a balance sheet

14. Considerations: Points to think about: » Take care not to over or under borrow » If appropriate, seek professional advice (e.g. bfa, Accountants, Solicitor, etc) » Consider your personal drawing requirements - we will. » Undertake thorough research before signing » Talk to other franchisees » Assess the business experience and financial position of the franchisor

15. The RBS Group does not warrant, recommend or endorse specific franchise systems

16. NatWest Franchise Team 0800 092 9117 / Minicom 0800 404 6161 Helen.hughes1@natwest.comfranchise@natwest.com www.natwest.com/franchise Lines are open from 9am – 5.30pm (calls may be recorded).