Some U.S. franchisers are taking steps to help franchisees secure financing amid concerns that a credit crunch is still stifling new store openings.
The companies behind national brands such as Popeyes, IHOP and Maaco are hiring executives dedicated to helping franchisees get loans. Other franchisers are paying for services that match franchisees with lenders.
Before small-business lending dried up in the wake of the financial crisis, franchisers rarely got involved in franchisees’ efforts to get loans. Franchisees were usually able to get financing on their own. But today, small-business lending is weak, and banks have stiffer lending requirements. Read full article.