Ardmore, PA (PRWEB) December 14, 2005
Information Logic, a first mover in developing Risk Management strategies for the Franchise Industry, announces the release of Franchise Qualifier (http://www.FranchiseQualifier.com). Franchise Qualifier combines the latest in behavioral and demographic scoring models to pre-screen and pre-qualify franchise applicants for the investment needed to successfully open and operate a franchise location. Franchise Qualifier goes far beyond the common “credit score” that is available at most credit bureaus. That score number, known as the FICO Score, has been both popularized and politicized in recent years on TV ads and by consumer groups. It is often used to evaluate risk for both consumer and commercial credit grantors.
Franchise Qualifier uses the traditional FICO score as only one component of its overall risk analysis process. Franchise Qualifier also employs in-depth analytical tools that evaluate demographic characteristics of the applicant, such as management experience in other businesses, education levels, and relevant industry experience that may be related to the type of franchise being acquired.
Franchise Qualifier has been designed to predict the likelihood of a business surviving the critical start-up period, which most experts agree is the first 4 years in the life of any business. Dave Sergovic, President of Information Logic and the chief architect of the Franchise Qualifier application states, “By deploying Franchise Qualifier as part of the franchisee qualification process, we can provide a clearer assessment of risk, enabling franchisors to better glimpse their likelihood of success as compared to traditional franchisee recruitment.”
The Franchise Qualifier score is based on the statistical analysis of thousands of pieces of sample data. The analytical process identifies trends from the past that are literally capable of predicting the future. Bob Rodi, CEO of Franchise Qualifier, states, “Credit grantors have been using behavioral scores to predict the likelihood of debt repayment based on past history for nearly 40 years. A franchise start-up, however, involves many other variables. Research shows that most franchise applicants have excellent credit scores that demonstrate above average repayment history. So, we wondered why some of these people failed. We found many other demographic characteristics that behavioral scores don’t take into account.”
Using Franchise Qualifier, franchisor personnel will be able to “rank order” the prospects that demonstrate the best characteristics for success. Franchise Qualifier also offers a “second level” financial qualification report that analyzes the applicant’s financial data to determine whether or not they can be pre-qualified to obtain the loan needed to successfully open and operate the franchise.
Rodi states, “Just because an applicant makes it past the initial screening doesn’t mean they are qualified to put a deal together. It simply means that they demonstrate the characteristics they need to succeed. They also need to have the capital to open the location. If a particular franchisor requires a $250K investment and the potential franchisee can only qualify for $150K then that applicant is not going to fit that particular system. It doesn’t mean they are a bad applicant. It simply means they need to lower their sights and look for an opportunity that fits their financial qualifications.”
Franchisors interested in a demonstration of Franchise Qualifier should stop by the company’s website at http://www.FranchiseQualifier.com, or contact Dave Sergovic at 1-800-495-6989.
About Information Logic:
Information Logic is a premier provider of technology, risk management, and business consulting services. We specialize in creating innovative solutions that are easy to use, highly scalable, and secure. Our flagship product, Franchise Qualifier, enables franchisors to better assess risk when selecting franchisees. For more information, visit us on the web at http://www.informationlogic.com. Or, to read more about Franchise Qualifier, visit http://www.franchisequalifier.com.