The Franchise Owner's most trusted news source

Log In / Register | Apr 25, 2018

Liar Loans Pt 5: Different Books for Different Folks

See no evil, hear no evil, speak no evil
Representing the franchise lending process? photo/rose robinson

LEXINGTON, Ky. — Franchisees of Huntington Learning Center, The Coffee Beanery and more say that the system was stacked against them. What irks them is that their franchisors had access to the real numbers while they struggled to get a scrap of financial information, any information, from a single store.

Part 3: Advice on SBA Liar Loans

Franchisees often dream of owning their own business that blinds their due diligence effortsWASHINGTON — Loan experts say that franchise owners should check for themselves if their loan applications are filled with bogus numbers. Franchisees say easier said than done. SBA liar loans are stacked against them.

Part 2: Franchise Liar Loans Spread among Banks

The new Small Business Administration office in Washington D.C.
Small Business Administration building in Washington, D.C.

WASHINGTON — A major franchise lender, Banco Popular, has been rebuked by the Small Business Administration for participating in lending chicanery. 

SBA Rebukes Banco Popular for Liar Loans

A Banco Popular branch in Elmhusrt, New York
Elmhurst, New York branch of Banco Popular, photo/pws

WASHINGTON — One of America's major lenders of small business administration loans has been sharply rebuked by the Small Business Administration for participating in financial chicanery. The bank accepted unrealistic earnings projections for Huntington Learning franchises when they should have known better.