Franchise systems are helping franchisees access financing in several different ways, according to an IFA Educational Foundation-FRANdata report.

The “Profile of Franchising Study: 2006” found that more than 20 percent of all franchisors offer direct financial assistance through a formal financing program. This includes franchisors (or one of their affiliates) offering direct lending/leasing programs to franchisees, as well as financing programs set up by third-party lending and leasing institutions with specially-designed applications, financing terms, and procedures for particular franchise systems.

Franchisees also receive assistance through the U.S. Small Business Administration’s Franchise Registry program. Nearly one-in-five franchise systems have registered with the agency to enable their franchisees access to a streamlined review process for SBA loan applications. HBM

Sources: www.franchise.org and www.frandata.com

Previously published in the February 2007 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($15.00 for 1 year, six issues). Visit www.homebusinessmag.com