Your problems may have much more to do with falling into a well-concealed trap rather than anything you could have done after you signed.
Predatory franchise lending: a commercial arrangement between bankers, sales agents and franchisor that results in catastrophic but predictable loss to the lender/franchise investor.
Predatory lending breaches the banker’s lending duty to: act prudently, perform adequate lender due diligence, and not “loan-push”.
- I worked with a business broker or sales agent to look for a good franchise system.
- I came to talk to the the sales agent about one franchise system but ended up buying another one.
- There was more than one equipment and leasehold improvement appraisal done.
- It took two checks or bank drafts to buy one franchise.
- The loan proceeds were disbursed before I saw: a disclosure document, franchise agreement or took possession of the store.
- I was sent to talk to a specific loan officer, of a specific bank, at a specific branch.
- The bank, who chose the appraisers, also chose the highest appraisal.
- The loan registration form came from the franchisor or sales agent.
- Government guaranteed loan was approved in less than 14 days.
- My banker said they’d have I’d have to have two loans instead of one.
- More than three other franchisees in my system, had the same lending officer.
- The franchisor is a member of a national trade association.
There are things you can do and I will be writing on these in the near future.
Any of this sound familiar?