These days, franchise loans are hard to come by. Business Insider recently published an article asserting this problem exists – at least in part — because the Federal Reserve is quietly continuing a bailout program initiated during the financial crisis in which it pays big banks interest on their excess reserves.
A recent study from the U.S. Census Bureau reports that franchises play a vital role in today’s challenging economy. Released in September 2010, the Economic Census Franchise Report was the first comprehensive report of its kind to be published by the government. The report states, “Franchise businesses accounted for 10.5 percent of businesses with paid employees in the 295 industries for which franchising data were collected in 2007. Of the 4.3 million total establishments surveyed, 453,326 were either franchisee or franchisor-owned businesses.” The new report provides the following insight on how franchising helps support the American economy.
Patrick Maslyn will moderate the always-popular “Meet the Regulators” panel discussion at the ABA Forum on Franchising Annual Meeting in Baltimore, MD in October.