At HBC, we only work with banks that are willing to provide the financing necessary for our clients to complete the franchise necessitated Property Improvement Plan (PIP) on a franchise property purchase.  Commonly, when a buyer is purchasing a new property the buyer is merely working off of estimates provided to them by the agent and seller on what the PIP cost will be on the property.  However, the formal PIP inspection is not done by the franchiser until after the new buyer has applied to the franchise for approval. Most buyers do not apply to the franchise for approval until after they receive their loan approval as the franchiser commonly charge an application fee of anywhere from $2,500-$7,500.  This can sometimes create problems for buyer’s if the PIP’s actual cost exceeds their original PIP estimated cost.  This is why it is very important that our clients work with banks the are comfortable with providing the PIP financing.   Banks that are comfortable with providing PIP financing will not have to much problem with increasing the bank loan to accommodate for the increase in the PIP cost.  This is a very big deal as banks that are not comfortable with financing the PIP will commonly require that the buyer must increase their down payment to account for the difference in the actual PIP cost with their original estimates.  We never want our clients to be caught in that type of situation.  Please give us a call regarding your next franchise purchase and we can assist you in finding you the best lender for your project.

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