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2008/08/13

After a Franchisor Files for Bankruptcy

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August 13, 2008
 

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NEWS  THIS WEEK'S TOP STORY

After a Franchisor Files for Bankruptcy

Bennigan's franchisees are still operating, but the uncertainties they face are heightened by cost pressures and the drop in diners' disposable income

Inside: This Week in SmallBiz
When big chains go bankrupt, their franchises can be left in the lurch or continue to profit. Of course, when corporate-owned locations close, those franchisees still operating independently have less power to negotiate discounts with suppliers. And the bad press that comes with a bankruptcy can be a blow even to franchisees with healthy businesses. We offer a look at what happened at Bennigan's and 10 other brands after they filed for bankruptcy.

Also on tap: Tune in to a podcast on complying with spam regulations. Learn how to do a back-of-the-envelope valuation of a business that's still relatively unproven. And help us locate hot startups for our ongoing Fresh series.
--Nick Leiber

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Complying with Spam Regulations
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  BLOG The New Entrepreneur >>

openquote

The Fed released its quarterly survey of senior loan officers on Aug. 12. The news is not good for small business borrowers: 65 percent of banks surveyed tightened their lending standards for small firms in the past three months. That's up from 52 percent in the Fed's April surveyÉ Bottom line: fewer loans for small companies at higher costs. closequote

-- John Tozzi
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