While I am not an advocate of most franchising, this is a suggestion, both for a franchiser, and a franchisee who may be seeking assistance for a franchise he is thinking of buying.
I find it exceedingly dangerous for a franchise to offer financing to a franchisee unless there is firm collateral. Despite the rosy marketing and promotional material, a franchise is, after all, small business, and that entails risk.
The only type of financing that makes sense is account receivables financing. It actually ties the franchisee more closely to the franchiser. Construction, real estate and general financing does nothing of similar sort that applies equally to both parties.
The franchisee usually finds it difficult to get financing these days, so any help from a franchiser is welcome.
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