The franchise industry accounts for 825,000 businesses across 300 sectors, which supports nearly $18 million jobs and generates $2.1 trillion in economic to the US economy*, is dependent upon smooth credit access.  BoeFly, the online marketplace that makes business lending easyTM, has conducted an analysis of franchise lending in 2012.  The study, presented in an easy-to-understand infographic explores which lenders are taking the lead, which states are enjoying the most franchise financing and best practices to help a franchisee secure a business loan. If you are interested in learning more about "How To Get A Franchise Loan", read our detailed page that covers topics such as timing, documents, risks and the services available to help borrowers get franchise funding. BoeFly, the … [Read more...]

The franchise industry has been steadfast in the face of economic diversity in the years following the Great Recession. Many experts attribute this success to the elevated support, both financially and with respect to immediate visibility among consumers, that franchising comes with. As several different franchise industries, including quick service restaurants, give entrepreneurs a chance to further boost revenues by becoming members of a bigger team. Identifying tangible franchising benefits TIME recently explained several methods of determining if a small business could benefit from franchising. According to the news provider, the choice is largely contingent upon the specific business model, as some will simply not fit the mold of a bigger corporate. The source focuses on businesses … [Read more...]

The Index found loans to franchises decreased by 2.11 percent from August to September, and by 2.01 percent from September 2011 to September 2012, showing the first drop following eight consecutive months of year-over-year gains New York, NY – Lending to franchise businesses dropped by 2.11 percent from August to September following a 3.64-percent increase from July to August, according to the Franchise Lending Index from the International Franchise Association (IFA) and BoeFly, the premier online marketplace connecting small business borrowers with lenders and a strategic ally of IFA to expand credit access within the franchise community. Year-over-year loan volume also decreased for the first time in eight consecutive months, dropping by 2.01 percent from September 2011 to … [Read more...]

The franchise industry has been cited for strong performances despite the turbulent economic conditions present since the recession, especially regarding food industry franchises. Franchise Business Review recently released a comprehensive report on the best food franchises in the country, which shed further light on the industry as a whole. Profitability ever-present Franchise Business Review surveyed 4,000 food franchises to compile the data for its survey, representing more than 22,500 franchised businesses and 84 brands. According to the report, the food franchise industry's average profitability increased just under 6 percent year-over-year, climbing from $77,511 in 2011 to $82,033 in 2012. The news provider noted that the finalists of its Top 40 Food Franchisees enjoyed nearly … [Read more...]

In recent years, franchises, especially those in the foodservice industry, have experienced widespread success despite recessionary conditions. Though myriad programs from government agencies and franchise advocacy groups have worked to boost lending to this sector, some franchisees are now citing difficulty when trying to obtain credit. Tightened availability of loans The Associated Press reports that prospective franchise owners have experienced the most difficulty in the loan application process. Because these new entrepreneurs often do not have much collateral, business ownership experience or established corporate credit scores, banks are increasingly turning down their loan applications. As an example, the AP interviewed one entrepreneur who tried to launch a location under the … [Read more...]

You survived the Great Recession, your business is growing again and you see an opportunity to expand. But economic growth is painfully slow and your banker, the ultimate naysayer to rapid growth, refuses to stake your aggressive vision. One solution is franchising your business. “We had been in business for nearly a decade when we decided to franchise, converting our current business model to a franchise system,” says Sandra Iventosch, president of Wilmington, North Carolina-based Park Select Franchising Opportunities. The company offers parking management systems in areas where vehicle owners often park illegally in privately-owned lots. “A Park Select franchise offers parking management services to business and property owners in any area with a limited amount of parking … [Read more...]

Many different demographics have struggled to pull through the recessionary period more than others, and veterans are among the most affected. However, several organizations and government agencies have stepped up efforts to correct this problem, offering financial support and guidance to former military members who are returning home. One such program is the International Franchise Association's Veterans Transition Franchise Initiative (VetFran). The IFA works with the U.S. Department of Veterans, the U.S. Small Business Administration and the Veterans Corporation, along with other members of the program like BoeFly, to provide veterans with entrepreneurial opportunities. BoeFly is a lender-borrower matching firm that helps create the most efficient loan application process. … [Read more...]

Many reports in recent months have shown that the franchise sector has seemed impervious to the widespread hardships of the recession. From specific franchisors reporting almost unbelievable gains in the first two quarters of 2012, to studies of advocate groups such as the International Franchise Association showing that franchise lending fared well through several months, conditions seem ripe for prospective franchisees. Regarding successes in recent quarters, the restaurant franchise industry has been booming through the first half of 2012. The Franchise Times revealed that the top 200 restaurant franchises grew 3.2 percent year-over-year in the second quarter. Additionally, several franchisors released their own results from the first two quarters, showing expansions in overall … [Read more...]

Franchising has been an increasingly popular choice for entrepreneurs in the post-recessionary years, as this option yields significant benefits and lacks some of the common risks associated with starting a small business from scratch. In addition to reports of increased franchise lending in the last few months, franchisees have been refining strategies to make the most of what they have. One example of this was in the 2011 earnings report of American Restaurant Concepts, which the franchisor released earlier this week. The company, which is the operator of Dick's Wings and Grill restaurants, said that revenues grew by nearly 20 percent last year. Further, the company's franchisees spent 40 percent less on operation costs, demonstrating marked improvements in business … [Read more...]

Restaurants are among the riskiest start-up businesses, even for experienced businesspersons. I financed several when I was in the commercial mortgage banking business and had abysmal results. All of the non-franchised restaurants failed within the first two years.   One restaurant failed after four months because the owner ran out of working capital. Another didn’t make it because of inadequate parking. I financed a fine-dining restaurant for a gourmet chef who made mouthwatering food but had little financial management experience. It failed in less than a year.   I learned from my mistakes and financed a new restaurant for an experienced owner with a history of industry success. But that did not work either. He catered to a young and fickle drinking crowd because … [Read more...]