Franchising’s Credit Crunch

This just appeared in yesterday’s CSP Daily News, and is totally consistent with my last post re. giving the government a “P” for Pathetic for the state of the Small Business Credit market.

Here’s an excerpt:

Research presented at the Small Business Lending Summit confirmed what many franchisees have been complaining about for years: They can’t get the financing needed to expand or refurbish.

The researcher, Frandata, said franchisees across all industries would fall about 20% short of their capital targets for 2011, a gap of some $2 billion. The ripple effect will impede the recovery of both franchising and the economy in general, said Frandata CEO Darrell Johnson.


Her comment, aired during a panel presentation by lenders and echoed by other presenters, prompted moderator and celebrity business writer Geoff Colvin to note the “giant disconnect between lender and borrower.”

Colvin was not the only one who seemed perplexed. “I’m totally confused by that,” said Bob Dorfman, head of the second-largest franchise in the Five Guys Burger & Fries quick-serve restaurant chain. “Fact is, someone is not telling the truth.”

See the full text of the article as this URL:


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