Franchise Note Buyers Debuts New Business To Help Franchisees Carrying Business Notes

DEL MAR, CA, January 27, 2011 (Press-News.org) The current credit crunch has hurt franchising, one of the nation's largest business segments. Thousands of franchisees, in order to sell their franchised business, are finding it necessary to carry back a business note to complete the sale, thus becoming their buyer's bank. The seller financed business note puts the franchisee in a difficult situation as they do not end up with cash from the sale of their small business, and they're faced with the worry that the note payor (their buyer) will not continue to make payments. Terms for Seller financing notes can last 5 years or longer.

As Rich Kolman, president & principal owner of Franchise Note Buyers explains "Carrying back these seller financed business notes can be a real nightmare for the small business owner or franchisee. Also, the fear of carrying back seller financing without a way to cash-out is limiting franchise re-sales. This is causing franchise closures which, in turn, slow down new franchise sales growth. So, we started this business to help franchisees, and the franchise industry, by buying these seller financed business notes."

The new company is much different than a bank, particularly if there is a default of the business note. The bank typically refuses to repossess and resell the franchise, often costing the franchise network a viable location. Alternatively, the Franchise Note Buyers team, with 35 years of experience in the franchise business, can take over the operation of the franchised business and save it from closure.

Franchise Note Buyers is the national leader, specializing in the purchase of franchise-backed business notes. The company delivers top-dollar for these business-backed notes, in the form of lump-sum cash, providing quick and easy solutions for franchisees and franchisors.

Franchise Notes are a type of promissory note ("IOU") where the installment loan payments are secured by the ongoing cash flow produced by franchised businesses. In other words, the franchised business (as opposed to real estate) serves as the note's collateral.

These franchised businesses include McDonald's, The UPS Store, H&R Block, Century 21, Marriott, Taco Bell, Subway, Ace Hardware, Dunkin Donuts, Radio Shack and many other franchise brands, selling a wide variety of services and products nationwide.