Getting the Money to Flow
Posted by rcohen on March 23, 2011 in Blog,Uncategorized | No Comments
Bridging the Gap Between Lenders and Franchisors
The franchise industry has entered the era of competition for capital. The economic and regulatory climate have restricted access to capital and severely limited franchise system growth. Only the franchise systems that are attractive to lenders will prosper in the new era. To attract capital, franchisors have to bridge the gap with the lenders.
To get the money flowing again, franchisors must see their system from the eyes of the lenders. Franchisors must show lenders that their system is designed to reduce credit risk and provide on-going support for franchisees. In addition, franchisors must assume some responsibility for the risk of default by their franchisees to entice lenders to fund.
To help bridge this gap, we are conducting a survey that focuses on growth plans of restaurant companies, capital needed to finance this growth, the types of support they provide to lenders and what system changes are being considered to make them more attractive to lenders.
Please make your voice heard on this critical issue to the entire franchise industry. Please go to www.vericomply.com/survey to take 5 minutes to complete this survey. With your input we can all help get the money flowing again.
