Franchise Finance Q&A

David Sandoval, Senior Vice President of Franchise Finance

David Sandoval has more than 30 years of experience in middle market banking and has worked at City National in Franchise Finance for over 10 years.

What are the usual terms for Franchise Finance loans?
Typically, 10 years.

What pricing options can I expect?
City National offers very attractive variable or fixed rates.

What reporting requirements would I have to adhere to?
You'd need to provide financial statements quarterly. Each quarter we perform an evaluation of your operating results.

What is the typical revenue of a City National Franchise Finance client?
We handle businesses with revenues of $5 million to $80 million.

What can I expect from a Franchise Finance relationship with City National?
At City National it's very personal. Franchise Finance at other banks can be very transactional in nature. Clients may have a tendency to conclude, “This gets put on the books and I'll never see my relationship manager again.” At City National we spend a lot of time and energy on you and your business. Your franchise finance relationship manager has no more than 15 clients – tops.

Why is City National's Franchise Financing so narrowly focused on Quick Service Restaurants and casual dining restaurants?
Our narrow QSR and casual dining food services strategy means we can focus very deeply on the particular restaurant concepts we target. We're experts in these restaurant concepts. We understand their marketing strategies and we know about what's going on internally with these corporations. We know about any new product launches, refurbishment requirements, advertisement strategies, etc. Our clients say to us, "You guys sound like franchise operators."

What are some of the ways City National helps its franchise operator clients?
We know that in any given year franchise operators may come to us with a variety of financing requests, such as acquiring additional stores from another operator, refurbishing existing stores, point-of-sale equipment needs, or a straight refinance of existing debt with another lender.

Why do clients typically switch to City National for Franchise Financing?
Our clients often switch to us from a transaction-focused institution that does not offer the relationship banking services for which City National Bank is so well known. Or the bank they started out with is really not a franchise finance bank and they've outgrown it. Many of our clients switch to City National based on referrals from other franchise operators who already have a relationship with City National Bank.

What geographic areas does City National cover for Franchise Financing?
We offer franchise finance credit solutions on a nationwide basis.

Discover What We Can Do For You

Call a Franchise Finance specialist at (213) 673-9026, Monday through Friday, 8 a.m. to 5 p.m. (PT).