1851

JPMorgan Chase and Bank of America, the two biggest banks in the U.S., were <a href="https://www.wsj.com/articles/businesses-are-loading-up-on-credit-spending-could-follow-11628069581?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-unused-credit-may-lead-to-rapid-franchise-expansion-2716351" target="_blank" rel="nofollow">reportedly</a> pushing $1 trillion in unused credit at the end of June. That figure is 20% higher than a year ago, and it could have lasting effects in the immediate franchising landscape.A Wednesday article by The Wall Street Journal explained how businesses are sitting on record amounts of credit, “another quirk in the economic recovery that bankers say could help unleash pent-up spending in the coming months.”This pent-up spending could soon alter the immediate landscape of franchise investing.“Companies aren’t actually drawing the money into their bank accounts just yet,” wrote <a href="https://www.linkedin.com/in/david-benoit-5999107?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-unused-credit-may-lead-to-rapid-franchise-expansion-2716351" target="_blank" rel="nofollow">David Benoit</a>, banking reporter for The Wall Street Journal. “Businesses are <a href="https://www.wsj.com/articles/banks-to-companies-no-more-deposits-please-11623238200?mod=article_inline&utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-unused-credit-may-lead-to-rapid-franchise-expansion-2716351" target="_blank" rel="nofollow">already stuffed with cash</a>, and supply-chain issues and <a href="https://www.wsj.com/articles/job-openings-are-at-record-highs-why-arent-unemployed-americans-filling-them-11625823021?mod=article_inline&utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-unused-credit-may-lead-to-rapid-franchise-expansion-2716351" target="_blank" rel="nofollow">labor shortages</a> have crimped their ability to spend it. But bankers say the activity in recent months is evidence that businesses are planning to turn on the spending spigot. That could help the economy shoot higher."Franchisors and prospective franchisees may choose to wait until the global <a href="https://1851franchise.com/popeyes-launches-chicken-nuggets-despite-chicken-shortage-2716294#editorials">supply chain</a> alleviates and a domestic <a href="https://www.forbes.com/sites/tomspiggle/2021/07/08/what-does-a-worker-want-what-the-labor-shortage-really-tells-us/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-unused-credit-may-lead-to-rapid-franchise-expansion-2716351" target="_blank" rel="nofollow">labor crisis</a> clears up before developing new units. Once that happens, we could see the rapid expansion of brands from a range of segments.&nbsp;“Bank executives said their business clients have in recent months ramped up requests for credit lines that can be drawn quickly for spending on inventory, labor or expansions,” Benoit wrote. If these requests are any indication, the lasting effects in the franchising industry could be full of investment activity.Unused credit may not lead to expansion in all cases. After the pandemic revealed how fragile certain operations are, businesses may treat their credit as a means to sustain current assets rather than develop new units. If existing franchises have a significant chunk of unused credit, they can treat it as their emergency reserve to manage a financial landscape that forced many to be cautious in the past year and a half.Some franchises will seek to capitalize on new investment strategies, and this unused credit could have a hand in a new wave of <a href="https://1851franchise.com/post-covid-urban-real-estate-landscape-brings-high-risk-high-reward-franchise-opportunities-2716341#editorials">urban revitalization </a>that could yield hefty figures. If a franchisee takes a chance with an abounding reserve of bank credit, their investment could pay off now unlike ever before.

How Unused Credit May Lead to Rapid Franchise Expansion

1851 Franchise

Franchise brands are finally starting to draw from mountains of unused credit, which may lead to a flurry of new development.

how-unused-credit-may-lead-to-rapid-franchise-expansion

HomeTeam Inspection Service

Good Day Columbus: Home Insurance Expert Reveals Why Central Ohio Premiums Are Rising and How to Combat Costs

rising-home-insurance-costs-ohio

CapitalSpring

Primetime Fitness Expands Crunch Portfolio With CapitalSpring’s Backing

primetime-fitness-expands-crunch-portfolio-with-capitalsprings-backing

Children's Lighthouse

How Children’s Lighthouse Franchisees Scale to Multiple Locations

how-childrens-lighthouse-franchisees-scale-to-multiple-locations

Express Employment Professionals

Betting on Himself: How Chris Brown Built an Express Employment Professionals Franchise From the Ground Up

betting-on-himself-how-chris-brown-built-an-express-employment-professionals-franchise-from-the-ground-up

Comfort Keepers

Comfort Keepers® Named One of America’s Best Home-Care Providers

comfort-keepers-named-one-of-americas-best-home-care-providers

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

How Unused Credit May Lead to Rapid Franchise Expansion

MORE STORIES LIKE THIS