Franchise Business Start-Ups Need Some Serious $$ Help Starting-Up

The current credit crunch is making it extremely difficult to get start-up franchise/business funding, and as much as the folks in Washington DC- including Karen Mills over at the SBA are pressing the banks to "open their vaults," I'm just not able to actually see inside them. This has me worried. Big time.

It's one thing for banks to tighten things up a bit, especially after last year's nightmare, but to not even open for business? Am I missing something?

The folks over at Fox Business News wanted to do some digging on this topic, and I was just asked to comment about the credit crunch, and it's impact on franchising.

Here's the really frightening thing I shared;

“I was talking with a major Cleveland-area lender recently, and I asked him ‘If I sent you someone with a million dollars who was looking for a $250,000 loan for a franchise - putting up $100,000 of his own - what would you tell him?’

Go here to see his unbelievable answer, then come back to this article-there's more I have to share...

So, now that you know how things look from a bankers side of the desk, do you think it may be a good time to invest in a franchise of your own?

I have your answer, as well as some comments about the Burger King franchisee lawsuit, who really makes a good franchisee, and a couple of other real facts about franchising, in this Fox Business News web-interview. 

Comments

[The Franchise King]

Chris,

Wild Women helped you get into a business.

I'm not sure I want you to hit that big red subscribe button on this page or not. You could be scary.

The Franchise King
Joel Libava

[The Franchise King]

Keri,
Good point. I guess it depends on how much career pain one is in!

Thank you for stopping by.

The Franchise King
Joel Libava

[Keri Allred]

Or do you think people are just going to be so put off by the hassle that they will skip franchises all together and seek other business-opening opportunities?

[Christopher Treacy]

There *are* financial resources out there - it's just a hell of a lot more challenging to tap into them. I was having an awful time of it with my PR endeavor, but I found some direction at Wild Women Entrepreneurs (although I'm a guy) - I found their site through a search engine... lo and behold, it's actually a good sized organization that will help entrepreneurs regardless of gender). Anyway, they pointed me on the direction of some private lenders... didn't immediately solve my problem, but it got the ball rolling in the right direction... always worth a shot: http://www.thewildwe.com
Cheers,
Chris

[The Franchise King]

Jim,
Great question..Again, thank you for stopping by.

Low-Cost opportunities are always popular when money is hard to come by.

But...and this is a biggie;

Low-Cost does not mean low risk.

The Franchise King
Joel Libava

[Jim Mandeville]

Joel- with funding so hard to come by now and in the forseeable future, do you think that lower cost franchises will become more attractive?