Marco’s Sets Up Financing For Franchisees

According to Nation’s Restaurant News, “Marco’s Pizza said it has secured a $7.5 million lending facility from Main Street Bank of San Antonio, Texas, to spur its plans for growth through franchising.”

“The 215-unit pizza chain opened 10 units in 2007, 19 units in 2008 and 33 units in 2009. It plans to open another 50 to 60 restaurants this year and as many as 100 in 2011, said Jack Butorac, chief executive of the Toledo, Ohio-based chain. The $7.5 million would fund between 30 and 50 Marco’s Pizza units, said chief financial officer Ken Switzer, adding that it costs about $300,000 to open one of the restaurants, including post-closing costs and working capital. According to the agreement with Main Street Bank, franchisees meeting the bank’s approval could borrow up to 75 percent of that $300,000, as opposed to the more typical 66 percent.”

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