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If a small business applied for a bank loan money to finance the initial franchising process and start up, what factors would be important to a bank to decide whether to loan the money?

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If a small business applied for a bank loan money to finance the initial franchising process and start up, what factors would be important to a bank to decide whether to loan the money?

Learning Activity #2

US Diner,a small restaurant business and general partnership with 7 partners is a very profitable, successful business located in Baltimore.  US Diner has 3 restaurants in the Baltimore are.  US Diner wants to expand its business and is considering doing so by franchising within the US.

A.  Analyze and discuss whether you would advise US Diner to franchise the business and why.

B.  After evaluating the positive and negatives, should US Diner franchise or expand the business in some other way?

 
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