As a young franchise in the hospitality industry, getting a loan  from the banks is not easy. When banks perform a risk assessment on  franchise groups they are frequently overly selective. Their  requirements, such as unachievable levels of turnover are so strict that  most young and growing franchises cannot meet them.

Graham & Denise Diamond, owners of the rapidly growing Outback Jacks franchise, discovered that by providing their franchisees with the Silver Chef Rent-Try-Buy® Solution as an option for their equipment funding, they were able to sell more Outback Jack’s franchises more easily.

‘We personally didn’t need finance when we started Outback Jack’s because we’ve been in franchises for over 20 years,’ said Graham. ‘However, many of our franchisors do need finance. Leasing requires bricks and mortar and unless you have that the banks won’t look at you. With Rent-Try-Buy®, it’s a lot easier because it opens Outback Jack’s up to a much broader range of business people who can afford to set-up in the first 12 months.’

The Silver Chef Rent-Try-Buy® Solution is a valuable tool as it means franchises and/or franchisors no longer have to come up with huge capital outlays. They are able to rent their equipment for a low weekly rental fee and retain the option to purchase at any time with 75% of the rent they’ve paid off the purchase price. This means that the largest barrier for potential franchisors – capital – is greatly reduced. Further, Silver Chef does not require a significant asset base and do not require Directors Guarantees – they help avoid the traditional finance ‘run around’.

When asked how the solution helped their franchisors get started, Denise responded. ‘Silver Chef Rent-Try-Buy® provides start-up franchisees with the flexibility that any new business requires in the first year of start-up. Businesses have the option to upgrade which is very good for start-ups who are experimenting. Menus are changing in the first few years and the business is evolving. We have a couple of pieces of equipment ourselves, that we purchased outright from the beginning - paid cash upfront. If we had put them on a rental, we could have flicked them back from the beginning when we realised that it wasn’t good for us.’

With over 6 stores open already, a further 5 just about to open around Australia and a total of 12 stores due to open over the next year, Outback Jacks is certainly a franchise on the move. Perfect for the Aussie steak lover, Outback Jack’s caters to for the whole family. The restaurant provides a relaxed and friendly family experience and boasts a menu carrying a variety of quality certified Angus steaks.

Silver Chef have helped Outback Jack’s to grow at a rate in keeping with the development of their brand and has meant franchisees have not been stifled by the often impossible criteria of the major banks.

‘Silver Chef helps franchises overcome the challenge of acquiring finance in the first year of business’, says Graham. ‘It allows franchisors to free up their cash flow and to achieve the flexibility necessary to find the equipment that is right for them in the first year of start-up.’