Franchisers helping Franchisees

Today’s tight credit market is causing franchisers to lend a helping hand to franchisees in need of financing.

“Great Clips Inc., a Minneapolis-based hair-salon chain, says it has secured $14 million in loans for expansions, acquisitions, debt consolidation and refinancing for new and current franchisees.

The franchiser obtained the money from lenders InSource Capital Services Inc. of Sherman Oaks, Calif., and IRH Capital LLC, Deerfield, Ill., “in the wake of all the turmoil and fear out there,” says Rob Goggins, Great Clips’ vice president of franchise development.

Mr. Goggins says the franchiser was able to get the financing partly because of franchisees’ low default rate on previous loans. Much of the money is still available, the company says.”

read full article by Richard Gibson

Bookmark it

The Credit Crunch Comes to Main Street

Getty

“To understand how the credit crunch is hitting American business — and, in turn, you — look no further than the Dog Shop, a pet-supplies and -grooming store in Washington, D.C. This holiday season, owner Jane Huelle will stock only four varieties of Christmas-cookie dog treats instead of the usual six. That’s because a month and a half ago she got a letter from her credit-card company saying her line of credit was being docked by thousands of dollars.”

view full article

Bookmark it