Franchises offering lending resources

8/4/2011

Starting a franchise opportunity can be as expensive as building a business from the ground up, and many entrepreneurs seek a business loan to procure a commercial lease, pay for stock and supplies and cover other startup costs. Existing branch owners often use small business lending channels to expand or improve existing operations.

Some franchisors offer assistance in the form of bank consultations and guidance for franchisees navigating the lending process. Procuring backing from the U.S. Small Business Administration, building a strong business plan to present to financiers and talking with lenders are all complex tasks with which expert consultants can help.

Popeyes Chicken restaurants' vice president of development Gregory S. Vojnovic sees lending resources as a new but necessary part of the franchise expansion process.

"The job is about finding lenders and explaining what Popeyes is all about," Vojnovic told the Wall Street Journal. "In the past we did not need to do that."

The franchise industry is expanding as the economy shows signs of recovery, and now may be the best time to invest in a national brand.