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Buying a franchise: Finding the money
 Financing
for lesser-known franchises typically comes from personal wealth.
Other common sources include independent banks and commercial lenders,
and the government. In fact, 10 percent of Small Business Administration-guaranteed
loans went to franchisees in 1998, up from 6 percent in 1997.
The SBA
has to approve the franchise or contract, mainly to ensure that
the franchisor/franchisee relationship is balanced. In September
1998, the agency launched the online Franchise
Registry to expedite franchisee loans for franchise systems
that meet the SBA requirements.
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