Franchisers Ought to Provide Financing

                      

I am not an advocate of most franchising, both for a franchiser, and someone seeking to buy a franchise.

                       

The franchisee usually finds it difficult to get financing these days, so any help from a franchiser is welcome. But, I find it dangerous for a franchiser 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 that applies equally to both parties. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)