Bank Credit Report
The Bank Credit Report ™ looks at a franchise brand’s actual performance history to create a comprehensive, standardized credit risk analysis that allows lenders to underwrite loans with better data – resulting in more approvals and better terms for franchisees.
In fact, brands with BCR’s grow faster than brands who do not use a BCR in their development process.
Simply put, a BCR gives conventional lenders better information to structure loans. With a BCR, the franchisor is able to lower their perceived risk, which means better chances of improved loan terms for their franchisees. A BCR also gives all lenders regulatory cover, which in this bank regulatory environment, means greater willingness to lend.
“The Bank Credit Report (BCR) has facilitated numerous loans to our franchisees and secured new banking relationships to benefit the entire Papa Murphy’s system. Because the BCR is produced by a third party, objective source, lenders rely on it. Thankfully for us, it communicates all the progress we made as a company and among our franchise units, while placing us head to head with our peers. The BCR has answers to all the questions that a lender wants to ask when assessing the credit risk of the Papa Murphy’s system ~all in one report, saving valuable time for all involved.”
— JAYSON TRIPP, CHIEF DEVELOPMENT OFFICER, PAPA MURPHY’S
Lenders want to see BCR’s as a starting point to create tranches of capital for brands. The BCR is the industry standard for lender/franchisor interaction and communication. It explains your brand’s financial story in banker language, allowing credit departments to better understand loan packages submitted by Franchisees.
FRANdata created the BCR specifically for lenders and its format has been updated by lenders to gather, analyze, and provide key insight on the performance history of a franchise.
“THE BEST MONEY I COULD SPEND EVERY YEAR.”
—GREG ESGAR, CFO, MASSAGE ENVY
Frequently Asked Questions About the Bank Credit Report
What is the Bank Credit Report?
The Bank Credit Report (BCR) is a comprehensive, standardized credit risk analysis created by FRANdata that examines a franchise brand’s actual performance history. It is specifically designed to give conventional and SBA lenders the franchise-specific data they need to structure loans, resulting in more approvals and better terms for franchisees. FRANdata created the BCR format in direct collaboration with lenders, and it has become the industry standard for franchisor-lender communication.
Who commissions a Bank Credit Report, the lender or the franchisor?
The Bank Credit Report is commissioned by the franchisor, not the lender. Because it is produced by FRANdata as an independent, third-party source, lenders rely on it with confidence. Franchisors who obtain a BCR give their brand’s financial story to lenders in banker language — reducing friction in the loan approval process and improving financing outcomes for their franchisees system-wide.
How does a Bank Credit Report help franchisees get better loan terms?
When a franchisor has a BCR in place, lenders can assess the credit risk of the franchise system quickly and accurately — lowering the perceived risk of lending to franchisees within that brand. Lower perceived risk translates directly into improved loan terms, higher approval rates, and faster processing for franchisees seeking financing. Brands with BCRs consistently grow faster than those without one.
How is the Bank Credit Report different from the FUND Score?
The FUND Score is a numerical credit rating used by lenders to evaluate a franchise brand’s risk level at a glance. The Bank Credit Report is a detailed narrative analysis that explains the brand’s full financial story — providing the context, data, and comparative benchmarking that lenders need to understand and act on the score. The two products are complementary: the FUND Score opens the door; the BCR makes the case.
What does a Bank Credit Report include?
A Bank Credit Report analyzes a franchise brand’s historical financial performance and business operations, benchmarks the brand against industry peers, and presents findings in a standardized format aligned with lender underwriting requirements. It gives credit departments answers to the key questions they ask when assessing franchise credit risk — all in one report, saving time for lenders, franchisors, and franchisees alike.
How does a franchisor get a Bank Credit Report?
Franchisors can obtain a Bank Credit Report by contacting FRANdata directly. Complete the inquiry form on this page or call 1-800-485-9570 to speak with a client advisor about your brand’s eligibility and the BCR process.