Franchised Banks

[ben73]

Hello All,

Most of my banking is with the BOQ. My branch is owned by the manager, a franchisee.

Does anyone have some insight into how the franchise agreement works, ie are they paid a commission for the sum of loans they are signing/maintaining?

Do these managers have any power to negotiate on the loan terms, or are they controlled from above?

Knowing what is going through the managers mind with respect to his own pockets may assist me to ask the right questions

Ta,
Ben.

 

[Qlds007]

Yes they indirectly earn a commission on both your savings and loan business but are limited to the credit policy of the Bank.

Being smaller than most their cost of funds has increased considerably and i think this is reflected in the interest rates and terms currently on offer.

Whilst they dont utilise mortgage brokers for their residential business as this is supposedly generated through their franchise network they are happy to use us for business lending and leasing.

 

[ben73]

Thank you Richard.

 

[TasInvestor]

"but are limited to the credit policy of the Bank."

Richard is correct, all loans are approved via head office, which has caused some anger from franchisees.