GE Capital, Franchise Finance, an operating unit of the
General Electric Company
), recently offered a credit facility worth $11.3 million to Ghai
Management Services, a franchisee of
Burger King Worldwide, Inc.
). The transaction is expected to enhance the liquidity of Ghai
Management Services and facilitate its working capital
requirements to drive further growth.
BURGER KING WWD (BKW): Free Stock Analysis
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Based in Fremont, CA, Ghai Management Services owns and operates
fast food restaurants. The company presently operates as a Burger
King franchisee in 38 locations in Northern California and
Southern Oregon. At the same time, it operates as a franchisee
for Taco Bell Corp., one of the leading brands of quick service
restaurant (QSR) operator
Yum! Brands, Inc.
Taco Bell is a premier Mexican-style QSR chain serving over 35
million consumers each week through 5,600 restaurants in the U.S.
On the other hand, Burger King operates over 12,000 restaurants
worldwide, about 90% of which are owned and operated by
independent franchisees. The franchise-centric model is widely
promulgated in the restaurant industry as it helps to reduce
volatility in earnings and enhances cash flow generation.
Ghai Management Services will utilize the credit facility from GE
Capital, Franchise Finance to acquire six Taco Bell restaurants
in Northern California. Over the years, GE Capital, Franchise
Finance has provided loans for the franchise finance market
either through direct sales or portfolio acquisition. With over
$10 billion in served assets, it primarily serves mid-market
operators in the restaurant and hospitality industries across
18,000 property locations.
General Electric is one of the largest and the most diversified
technology and financial services corporations in the world. With
products and services ranging from aircraft engines, power
generation, water processing, and security technology to medical
imaging, business and consumer financing, media content and
industrial products, the company serves over 100 million
Its segments include Power & Water, Oil & Gas, Energy
Management, Aviation, Healthcare, Transportation, Home &
Business Solutions, and GE Capital. With 80 years of experience
in consumer financing, GE Capital's Retail Finance business is
one of the most successful retail lenders in the U.S. It offers
private label and bankcard credit programs to leading national,
regional and independent retailers in the U.S., as well as
private label credit programs, promotional and installment
lending, bankcards and financial services for consumers through
dealers; contractors; manufacturers; healthcare practices; and
General Electric currently has a Zacks Rank #3 (Hold). Other
notable company in the industry include
), which carries a Zacks Rank #2 (Buy).