The Wall Street Journal recently featured Rush on Business in The Journal Report on Franchising. Other Web sites featured included MyFranchiseLaw.com and Fox Rothchild’s Franchise Law Update. This blog was also featured in a Wall Street Journal article in March of 2009 as one of the blogs for prospective franchisees to read.
The Journal Report also has an interesting article on the increased demand for experience and cash from franchisees and how it is getting tougher for entrepreneurs to get in on franchises these days. One of the experts quoted explains that the margin for error in a down economy is less. The article also discusses the fact that banks are turning down loans right and left so franchisors want candidates to look as attractive to banks as possible.
My recent experience has been that it’s true that many entrepreneurs, including prospective franchisees, are having a difficult time getting loans. Consequently, if you are considering a franchise or other business opportunity it is increasingly important to have a significant portion of the start-up costs in cash and a excellent credit score. If you don’t have the cash to put into the deal, you may need to look to alternatives other than bank financing and those alternative can be difficult to find in Iowa.