According to the Detroit News the global credit crunch is forcing some Domino's Pizza franchise owners out of business, as banks cut off loans even to long-standing customers with solid credit.
"The problem has gotten a lot worse," since the passage of the $700 billion bailout, said David Brandon, chairman and CEO of Domino's Pizza Inc. Brandon was in Detroit to speak to a group of entrepreneurs at Wayne State University Wednesday. But the bailout package has done nothing to ease the credit crisis that's slamming many Domino's pizza franchisees, just as it's hit owners of other chains. Tightened credit means it is much harder for franchise owners to borrow money for both short-term credit lines and longer term loans.
"It's a major crisis. We are talking about people who 20-year relationships with their banks and suddenly they are being turned away," Brandon said. "Many of our owners have three or four franchises. It's a very tough situation."
“Brandon wouldn't say how many stores Dominos has lost in the past few weeks, but acknowledged that the Ann Arbor-based pizza chain has lost stores at a far higher rate than in the recent past.”
"The problem has gotten a lot worse," since the passage of the $700 billion bailout, said David Brandon, chairman and CEO of Domino's Pizza Inc. Brandon was in Detroit to speak to a group of entrepreneurs at Wayne State University Wednesday. But the bailout package has done nothing to ease the credit crisis that's slamming many Domino's pizza franchisees, just as it's hit owners of other chains. Tightened credit means it is much harder for franchise owners to borrow money for both short-term credit lines and longer term loans.
"It's a major crisis. We are talking about people who 20-year relationships with their banks and suddenly they are being turned away," Brandon said. "Many of our owners have three or four franchises. It's a very tough situation."
“Brandon wouldn't say how many stores Dominos has lost in the past few weeks, but acknowledged that the Ann Arbor-based pizza chain has lost stores at a far higher rate than in the recent past.”
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