Franchising and Leasing as a Support for the Growth of Small Businesses

Abstract

One major reason why small businesses owners choose to become franchisees are that they become able to operate as if they were much larger enterprises. When analyzing the franchise of various companies, one can easily become confused with all the terms used to discuss the multitude of fees and expenses. Franchise fees, security fees, base rent fees, percent rent fees, service fees and royalty, not to mention the various purchase cost options, all come into play. Leasing presents very powerful source of financing, because it presents good solutions for providing basic funds. Leasing is very significant for small and medium companies, and also for new companies which they don’t have good credit capabilities for funding basic funds.