She’s got Diamonds on the Soles of Her Shoes -Women in Franchising

(Also Guest Host During Show Hour Listen to the Entire Show Here!)


Hi This is Holly Ford from Zarian Firm


SBA Financing of a Franchise Resale.

Lots of ways to do this and this will be a two-minute topic on a future episode, but for today I want to talk about SBA financing.  Sounds simple, but this can be a very complex process as the bank is looking at 3 distinct factors involving the transaction.  Lets call these the ‘3 B’s’

  • The Business
  • The Brand
  • And the Buyer

If any of these elements are not strong enough it can blow the whole deal.

Obviously the Business has to have the value.  Is the asking price in alignment with the valuation. But even with proven value, banks will take this a step further and demand that the business have tenure - in other words for the SBA to approve the resale it has to have a positive financial trend.  But….. if the business is too new…. there’s not enough data to support a strong trend making it difficult to obtain SBA approval.

Then there’s the second B - the Brand.  The SBA will look closely at several factors. Does the Franchisor have a strong 5-year retention rate, meaning are those that bought the franchise 5 years ago still in business today?  Also is the brand still selling new franchises?  And how much attrition did the brand suffer over the last 3 years.  In other words, how many stores closed? And finally what is the SBA default rate? If it is high, it may indicate a poor franchisee support system.  A brand not meeting SBA minimums will be difficult to finance.

And then our 3rd B. the Buyer. The SBA will look at much more than just having a good down payment.  The buyers background is a strong component. For example, Does the buyer have experience in the industry?  The bank wants to make sure that the buyer can continue the success of the business. And if the buyer does not have a lot of experience, will the existing management stay in place and does the buyer have enough working capital to support this transition period?

If you’re interested in learning more about today’s trend - sba financing of a franchise resale connect with me through the Pillar’s Blog or send an email to ‘’


She’s got Diamonds on the Soles of her Shoes - Women in Franchising

In 1986 Paul Simon’s Graceland album was released. The 6th track being our show title today - She’s got Diamonds on the Soles of her Shoes. This song is a masterpiece of what some call African rock fusion. The Zulu dialect of the refrain roughly translates into “It's not usual but in our days we see those things happen. They are women, they take care of themselves.”

In 1986 just a little over 3 decades ago, women taking care of themselves was indeed not usual. But in that same year, The Women’s Business Development Center was formed - curating educational seminars, government guidance and training opportunities for women in business.  Then in 1988, congress passed The Women’s Business Ownership Act.  This act legally ended discrimination in financing and eliminated state laws that required married women to have a husband co-sign for all loans.  Then, the very next year, President George H. W. Bush appointed the first woman to head the Small Business Administration, Susan Engeleiter.

The 1990’s continued the assistance for women in business with Wells Fargo Bank launching a $1 billion loan fund for women entrepreneurs. This billion dollar fund raised $10 billion in just one year; the 90’s also saw Key Bank, Goldman Sachs and other institutions increasingly launched financing initiatives to assist women entrepreneurs; and of course the rise of female celebrity entrepreneurs such as billionaire Martha Stewart continued to mentor a path for women in business.

This decade now boasts 11.6 million firms that are owned by women.  But despite this phenomenal growth, Women-run businesses still only earn just 25 cents for every dollar of their male counterparts.

But franchising is different.  Women purchase a structured business with standard pricing and equal expenses. The often male referral network now falls to the shadow of consumer demand for the franchised product.

These advantages for female franchise owners have led to an over 90% increase in female franchise ownership over the last decade compared to just 10% of male ownership growth.  Today women own over 27% of all franchises… just 3 decades later it is becoming more and more usual for a women to have ‘diamonds on the soles of her shoes’.

If you would like to learn more about the advantages of a franchise for female business ownership connect with me on the blog or at

Next weeks two-minute topic is entitled Melts in Your Mouth, Not in your Hands  - What really is a Unique Selling Proposition?


Molly Maid!

Molly Maid is a home-based, unique cleaning franchise opportunity with three decades of profits to prove the concept.  Total estimated investment is 89k - 139k.

Give me a call if you want to learn more about a great resale opportunity I have for you in Atlanta, Georgia.


If you have any questions about this topic or any other question regarding franchising email me at and we can cover it on a future episode.

This is Holly Ford of Zarian Firm on Pillars of Franchising saying see you next week Same Time Same Bat Channel.

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