Dickey’s Barbecue Pit, a restaurant founded in Dallas, TX, set out to perfect and revolutionize Texas-style barbecue. Barbecue is a regional cuisine found mostly in southern states, and Dickey’s is hoping to change that one restaurant at a time. As it continues to expand from coast to coast, customers are wooed by the home-style flavor and family friendly atmosphere.
Founded in 1941 by Travis Dickey, Dickey’s Barbecue Pit has seen monumental success throughout the years. Travis, with the help of his sons, Roland and T.D., expanded the business throughout the Dallas/Fort Worth area, eventually franchising in 1994.
Although much success was seen throughout the years, the Dickey family experienced their fair share of challenges. In the business’s early days, Travis needed access to capital in order to expand. He rented out space on the restaurant’s sign to pay start-up costs for the restaurant, and had to limit the menu significantly. Fast forward to current days and the opening of two new franchises in Texas and Washington. Today, Joseph Enueshike and Dan Pelfrey, Dickey’s newest franchisees, face a new set of challenges as they prepare to open the newest Dickey’s establishments.
Expanding the Brand: Financing the Legacy
Joseph Enueshike, a local Texan, was looking at a tight window to launch his newest Dickey’s franchise. He approached two banks, where he was turned down (as approximately 80% of small businesses are). One alternative lender was recommended to him, but as many alternative lenders only work with the biggest franchises, he was turned down. When he found Dealstruck, he met none of the resistance he’d experienced with banks or other alternative lenders. According to Joseph, he felt that Dealstruck understood him, and it just felt right. Dealstruck assessed Joseph’s situation and what he was trying to do with his Dickey’s franchise offered him a $175,000 term loan at 18% for his financing needs.
Without missing a beat – or incurring delays on the work due to payment delays – the funds were deposited directly to Joseph’s vendor partners – Central Equipment ($40k), Tri City Sign ($13k), Ole Hickory Pits ($11k), and the remainder to the general contractor.
First-Time Financing for the Promising Start-up Franchisee
Dan Pelfrey, a first time franchise owner, grew up eating barbecue in Texas and is excited to be bringing Dickey’s Barbecue Pit to the Tri-Cities in Washington. His first franchise is set to open on August 28th, 2015 with a three-day grand opening celebration, and he plans to open two additional Tri-Cities locations by 2016.
“Being a Texan, I wanted to bring authentic Texas barbecue to the area. The brand is loved in other Washington markets and it’ll do great here too. There’s a lot of tradition here in Tri-Cities and I’m excited to start a new tradition of authentic Texas-style barbecue.”
To ensure his first restaurant opened smoothly and on time, Dan, too, needed a hand in financing and building out the location. Dealstruck offered him a term loan of $250,000, allowing him to meet his financial deadlines, pay vendors, and ensure his first Dickey’s BBQ franchise location will open without a hitch.
As one of the only alternative lenders that will customize loan products for franchisees, including start-ups, Dealstruck presents a unique and valuable offering for franchisees like Joseph Enueshike and Dan Pelfrey. And unlike banks, other alternative lenders, even the Small Business Administration, Dealstruck recognizes that franchise startups and first-time franchisees are some of the most in need of capital to get their business off the ground and thriving.
Now who’s hungry?