Caldeira: Lenders view franchises as lower risks

05/15/2013 | Inc. online (free registration)

Many entrepreneurs are turning to franchises for investment in uncertain economic times, driven by the opportunity they offer for job creation, the 13.9% increase in franchise sales over the past five years and a 13.4% increase small-business lending to franchises in 2013. "Many lenders often view franchising's proven, structured and scalable business model as a lower risk profile due to the support many franchisors are offering franchisees during the economic recovery," IFA President and CEO Steve Caldeira said.

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