Sikono

The 1st Seamless Franchise Financing FinTech Program


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SIKONO is Greek for ‘Lift Up,’ which represents the company’s theme. By offering a seamless franchise financing program like no other, our mission is to offer entrepreneurs a ‘lift up’ to realize their dreams of independent franchise ownership and success. The SIKONO program is timely (quick approval process & funding), user-friendly, and reasonably priced. Plus, our proprietary software will offer continuing assistance to candidates, and also as franchisees, during every phase of their new venture and throughout the tenure of their loan term.

A Franchisor’s Greatest Dilemma - every time a new candidate finally decides to purchase their franchise, …………… how will they pay for it?

Other industries — such as appliance, RV, furniture, home, and auto — offer their own alternative seamless financing source to buyers. But for franchise financing, options are limited to:

SBA bank loans (which are lengthy and cumbersome)

Institutional lenders (who want substantial collateral)

Retirement rollovers (residual fees/complicated)

Asking family and friends for a loan or to invest

Digging into your own personal funds

Alternative financing methods such as equipment leasing and business lines of credit which may result in higher rates and/or multiple sources for funding

Franchisors desperately need, and would prefer, to be able to offer their candidates a timely, user-friendly, and reasonably priced financing option, and yet, in spite of the fact there is a $30+ BILLION Annual demand for franchise financing of start-ups and resales which has grown every year since 2008, there are no programs specifically designed to meet these needs…

…..… Until Now!

Meet SIKONO, an alternative seamless FinTech (Financial Technolgy Company), specifically designed for the franchise industry financing dilemma.

SIKONO benefits franchisors and their new candidates by offering a timely, user-friendly and affordable source specifically targeted for today’s franchise financing demands.

We will offer loan approvals to candidates of our ‘select franchisors’ in as little as 72 hours, loan closings as quick as 30 days, and no outrageous collateral demands.

One thing SIKONO knows is: 'When the candidate finally makes that decision to buy a specific franchise, that franchisor needs a seamless franchise financing source to offer their candidates who are ready to move quickly!'

SIMPLE - A TOP DOWN, not bottom up, approach. The SIKONO team will identify the best franchisors through a stringent due-diligence process.

This includes a thorough preview of:

Each franchisor’s financials

A specific number of units in operation in multiple states

Less than a 3% failure rate

Individual unit validation with existing franchisees

The FDD (Franchise Disclosure Document), the corporate structure and team, training and support programs; and more.

If the franchisor meets our criteria, they will then be invited to join our ‘Select Franchisor List,’ (hereby referred to as the 'SFL').

Once they are on the SFL, the franchisor will sign a contract to allow SIKONO to have a first lien on the individual franchise license financed, and they will allow any of our staff to attend their training program as often as needed. The franchisor will also agree to offer our program to any of their candidates seeking financing (not exclusively) and to include in their advertisements that ‘Financing is Available.’ They will then immediately offer the loan program to their candidates in need of financing.

A seamless franchise funding source for franchisors to offer their candidates as soon as they’ve made a decision to buy a franchise. SIKONO will be able to help the candidate in every phase of the buying process in order to move quickly to achieve their dream of being an entrepreneur.

We’re a FinTech (Financial Technology Company), so all transactions are handled with ease over the web, creating a proficient transaction in a timely manner. SIKONO offers a 72-hour loan approval timeframe, and closings in as short as 30 days from the acceptance of the candidate by the franchisor.

Our proprietary software system will provide assistance to the franchisee at any time during the tenure of their loan.

After SIKONO underwriting procedure approval, the candidate’s collateral obligation is simplified with a pledge of personal guarantee, their equity in the franchise including their down payment, and the franchise license for security against their loan.

If a default occurs, the SIKONO ‘S.W.O.T. ‘A’ Team’ (Strength-Weakness-Opportunity-Threat Analysts) will facilitate repossession of the franchise, and refurbish the location/operation for resale if necessary. Then SIKONO will offer financing to a new candidate which is first pre-approved by the franchisor.

The franchisor also benefits from our exclusive recourse program by being able to convert unwanted ‘failures’ to ‘transfers’ which are required to be listed annually in their Franchise Disclosure Document (FDD).

SIKONO has taken great strides in creating a successful program in an industry where it’s desperately needed. Here are some of the milestones we’ve reached so far:

SIKONO is the first seamless franchise financing fintech with a proprietary software system for supporting franchisees during the tenure of their loan. Our unparalleled ‘recourse and recovery system’ protects our exposure to any outstanding loan, as well as offers SFL franchisors a validation advantage – an exclusive feature not offered by any other funding program in the market.

SIKONO conducted a beta test in which franchisors presented their existing candidates with information about our program — including approval/closing time, collateralization requirements, rates, amortization, and term — to gauge the candidates’ interest. In 22 days, there were over 26 interested prospects with A+ credit and at a combined value totaling $6 million. Some candidates even opted to wait until the SIKONO program was opened for funding to make a purchase, which fascinated and frustrated the franchisors since the program is not yet open.

Our software system monitors loan recipients’ financial performance and notifies us of ‘red flag’ problems before they occur. This allows us to work with the franchisee and help set them back on a course for success.

Moving forward, we’ll continue to build momentum in order for SIKONO to reach its full potential. This includes seeking additional sources for loan pool funds, re-investing principal recovered through loan payments to grow the loan pool, and opening the additional profit centers in a timely manner that will complement the original 'start-up' lending program.

Once the minimum ($2MM) is reached, the main office will be established in Houston and the core staff will be put in place, including administration, underwriting, a franchisor analyst, and a development officer. We’ll finalize the loan documentation and franchisor agreements we’ll be using, the software for applications and monitoring, the necessary finance FinTech licensing, and create/develop the website and social media accounts.

Initially, SIKONO will invite and place 3-5 franchisors on the SFL in the first 30 days. In the following 3-5 months, the plan is to add the same amount each month as funds allow. Once a reliable and reasonable resource for the loan pool is established (which several sources have expressed interest), SIKONO anticipates having 200-300 franchisors on the SFL list and projects a loan volume of 20-30 loans per month within the first 2 years.

SIKONO has plans to bring additional profit centers online at the appropriate times. Since SIKONO will become closely affiliated with the franchisors on their SFL and a trust evolves from our delivery to their start-up candidates, franchisors will be receptive to opening our expanded program to the rest of their franchisees. Some examples of additional opportunities are: a loan program to connect existing franchisees with working capital and refinancing for expansion/refurbishing, a resales loan program for existing franchisees ready to sell their unit(s), and a unique proprietary franchise broker firm.
NOTE: Our proforma does not include any of these additional profit center’s potential incomes. The conservative income projections from the initial program are more than sufficient for this offering, but all additional profit centers will be included in the holding company that investors will be a part of.

In other words, an opportunity with a growing market & unlimited upside potential!

Want to learn more about SIKONO and what they have planned for the future? Make sure to request access to the Business Plan tab of the profile to find out how you can get involved!

Mr. Fogleman has 35 years of experience in the franchise industry as a single and multi-unit franchise owner, regional territory developer, franchise broker, and franchise advisor to several franchisors. He was previously a Louisiana real estate broker, former Savings & Loan EVP with 12+ years of experience, including REO takeover, turnarounds, and extensive special asset management.

Mr. Carpenter is SIKONO’s SFL business developer, due diligence, and promotion director. He has 20+ years in the franchise industry as a franchisee, master franchisor, and in franchise sales, and has developed eight different franchise concepts.

Mr. Meredith has over 30 years of experience in the banking business, including underwriting and assisting in establishing 3 new banks.

Mr. Whitlock is a retirement rollover expert with 10 years of experience in underwriting and will assist candidates in achieving their equity needs.

Mr. Reynoso specializes in targeting franchisor future site locations with over $50,000,000 in closed lease and sale transactions.

The company also has several prospective team members who will join the operation at the appropriate time and once certain performance goals are achieved. These additional professionals have expertise in marketing, software and IT, franchise law, finance underwriting, turnarounds, and business/franchise development.

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