Above-average lending to franchisees in food service and hospitality

Jessica SarterBoeFly In The News

The Franchise Handbook

The Franchise Handbook“We are very glad to see that franchise businesses, especially those in some of the largest sectors, are getting more access to capital over a long-term period, but the industry is still facing a shortfall in lending that has limited franchise growth and job creation since the start of the recession,” said IFA President & CEO Steve Caldeira. “Our hope is to see lending steadily increase over the next several months, but more certainty in the tax and regulatory environment would go a long way towards ensuring a full rebound to lending levels that meet demand for franchise industry growth.”

“The drop in franchise lending is an unfortunate symptom of today’s challenging credit market, but the positive news is that lending to franchise businesses has remained fairly steady year over year, showing stable long-term growth,” said Mike Rozman, co-president of BoeFly. “It is also positive to see higher-than-average levels of credit access among franchisees in large industries such as food service and hospitality, which demonstrates that these franchise businesses are growing even in the wake of the financial crisis. We anticipate that these businesses are poised for further growth in the coming months.”

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