Franchise Note Buyers Introduces Innovative "Non-Bank" Financial Solutions for the Sale of New and Existing Franchised Businesses.

DEL MAR, CA, February 13, 2011 (Press-News.org) Frozen credit markets are adversely impacting the multi-billion dollar franchising industry. The lack of bank loans for franchised businesses is the major factor preventing the sale of new franchises. Further, this national credit crunch is stopping the re-sale of existing franchises, from franchisee to franchisee.

"Transfers (re-sales) are a healthy part of every franchise system. But the nation's lack of bank lending to buyers of existing franchises threatens the ability of franchise systems to rejuvenate their networks through new franchisees. This reduction in transfers also increases business closures, which further impairs the ability to sell new franchises" states Rich Kolman, President and Principal Owner of Franchise Note Buyers, who has long served as trusted in-house legal counsel for some of the nation's leading franchising companies. He is widely admired as one the nation's most accomplished and experienced in-house franchisor attorneys.

"These problems could be easily solved if the franchise owner self-finances their business sale. But who wants to 'become the bank' for their buyer?" concluded Mr. Kolman.

The newly formed Franchise Note Buyers offers an alternative solution. After the seller completes their franchise transfer, with a seller-financed note, Franchise Note Buyers will purchase that note. This allows sellers to move forward confidently with their franchise transfers, understanding that they can be cashed-out and not stuck as their buyer's long-term "bank", waiting years for their monthly payments to dribble in.

Franchise Note Buyers' "non-bank" financing solution also helps prevent business closures, if the note they buy ever defaults. Unlike banks, which do not take over franchise operations when their notes default, the FNB team has decades of expertise at some of the world's leading franchise organizations and is well prepared to keep the franchise open and operating.

This new Transfer Facilitator program (www.franchisenotebuyers.com/partners) offered by Franchise Note Buyers is destined to have a major positive impact on franchisees and franchisors. Franchise Note Buyers helps franchisees sell their businesses, while at the same time helping franchisors prevent closures.

"As with franchise transfers, banks have stopped lending to Main Street small business owners, including buyers of new franchises. All franchise systems have felt the negative impact on new franchise development" states Eric Simon, Director of Customer Solutions for Franchise Note Buyers. "These new challenges require new, innovative ways of thinking - when the only obstacle standing between the franchisor and the new franchise sale is the lack of a bank loan" concluded Mr. Simon.

More and more franchisors are boldly moving forward with in-house financing, lending funds to their buyers of new franchises. The unique twist offered by Franchise Note Buyers is that these franchisor-lenders can cash-out and not have to "remain the bank" for the long term. They can sell that loan's newly-created note to the Franchise Note Buyers team.

Mr. Kolman concludes, "We're taking the next step beyond our standard program of purchasing already-created franchised-backed notes, from franchisors and franchisees. By helping to facilitate the sale of new and existing franchises without franchisors and franchisees having to rely upon bank loans, we are proving that the free market can adapt in ways to overcome the banking industry's current problems."

Franchise systems stand to reap the following benefits--

Overcome the number one threat to the sale of new and existing franchises: franchisee banks' delay and rejection.

Build network growth safely with in-house financing, featuring the swift transfer of the new franchise loan's risk of non-payment (default) to a third party, namely the Franchise Note Buyers team.

Increase revenues from franchise fees, royalties, etc., from the new franchises sold and the closures prevented through theses innovative programs.

Franchise Note Buyers (www.franchisenotebuyers.com) offers unique alternative financing solutions to help franchisees and franchisors. They buy promissory notes (IOU's) that are secured (collateralized) by franchised businesses. They buy these franchise-backed notes from franchisees, especially those who had to carry back seller financing (i.e., become their buyer's "bank") in order to complete the re-sale (transfer) of their franchised business. Franchise Note Buyers also buys these franchise notes from franchisors, who loaned monies to their franchisees. Their innovative "non-bank" financing solutions help to faciliate the sale of new and existing franchises.

Franchise Note Buyers, LLC
855-FNB-CASH (362-2274)
Text FNB to 90210
858-356-6606 FAX
Email: rich@franchisenotebuyers.com
1155 Camino Del Mar, Suite 456, Del Mar, CA 92014
Internet: http:// http://www.franchisenotebuyers.com