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Financial Sources

Franchisees may finance their operations only with their own or the franchisor’s funds, mainly by using trade credit or by paying the initial franchise fee through installments. Unfortunately, to date Polish banks have not introduced any financing schemes for franchisees. Governmental agencies (such as the Polish Agency for Entrepreneurial Development) as well as loan and surety funds grant financial support to small entrepreneurs primarily by using EU funds. However, as the institutions in question have not worked out a systemic approach to franchisee financing, they apply the same criteria toward franchisees as they would toward all small-size entrepreneurs applying for financial assistance.