Franchisors: Financing Options to Increase Franchise Sales

In a recovering economy where small business loans are still hard to obtain some franchisors may find one reason their prospective franchisees may not follow through with purchasing a location is because of a lack of finance options.  Some franchisors are taking extra steps to make efforts to "bridge the gap" between prospective franchisees and loans facilitate franchise growth.

In a recent article on the Wall Street Journal Online, "Franchisers Focus on Loans", some franchisors are finding that offering financing assistance is a critical tool for expanding system growth. Among the many franchisors offering financing assistance, Popeyes, IHOP and Maaco have hired outside consultants to franchisees in identifying financing options. The reason for this recent interest in financing assistance are the alarming statistics that show that 39% of franchisors have identified the lack of franchisee financing options as a major factor inhibiting sales.

For additional information about issues affecting franchisors in today's economy request a complimentary copy of "The Revised Franchise Formula: A Guide to Franchising Your Business in the New Economy". For immediate assistance contact franchise lawyer Charles N. Internicola regarding our Franchise Programs at 1-800-976-4904.