How To Help Your Franchisees Find Financing

Law360, New York (October 2, 2013, 5:20 PM EDT) -- The good news for franchising is that the economy is coming back. Hit hard by the 2008 economic recession, franchise indices show an uptick in new franchise concepts and pent-up demand for franchises among buyers.

FranData, an independent franchise industry research firm, estimates that in 2013, banks will loan $23.9 billion to franchise businesses, the highest level since 2009. A quarter of these loans will come from the U.S. Small Business Administration's loan programs, which guarantee as much as 80 percent of the loan principal for a bank, with the rest being conventional bank loans.

But even with this improved outlook...

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