Blog Hotspot for Franchise News ...

Despite the nay-sayers, Twitter seems like it is here to stay. Its direct, up-to-the-minute style of communication is perfect for the times we live in. With more and more businesspeople and entrepreneurs tweeting, Franchise Direct has gotten in on the act.

Follow Franchise Direct on Twitter here. You’ll be able to access the best new franchise and business opportunities on offer and stay on stop of all the different things that make Franchise Direct so unique: new franchise studies, new videos from our Franchise Interactive page as well as our regular Franchise Update videos.

The IFA has issued a strident warning to the government as it predicts a sharp decline in franchise lending this year. A new study conducted by FRANdata for the IFA shows that franchise lending will be down 40% this year and Matthew Shay, IFA president has urged Congress to act quickly to preserve “50,000 jobs and more than $5 billion in economic activity”.

Ourselves, and others,  have said time and again that franchising is the real economic stimulus plan. But against the backdrop of the economic downturn, this FranData study provides stark evidence of the severity of the economic challenge facing the franchise industry. The credit crunch that has proceeded the recession has left both franchisors and franchisees unable to access the necessary capital to keep their businesses going. While there have been signs of a slight return to normal, it is clear now that more action must be taken by the government to accelerate lending.

The IFA has called for President Obama and Congress to do the following four things to increase lending to franchises:

• Increase the Small Business Administration’s 7(a) loan’s maximum limit to $3 million from $2 million and the maximum loan guarantee from $1.5 million to $2.7 million.
• Make SBA loan prices to be competitive with other forms of capital investment.
• Halt the new SBA policy on “goodwill” financing of business acquisitions.
• Promote audit standards so banks are assured SBA loan guarantees will be honored.

Mr Shay also uttered this warning to the SBA chief and government about the urgency of the situation: “Every day that we delay fixing this credit crisis will cause more small business owners to wither on the vine.”

We all know these are difficult times, but there things you can do, such as writing your congressman or senator urging them to take action to make lending easier.

You can also check out Franchise Direct’s summer Recession Buster franchise offers, which make it easier than ever to purchase, despite the challenges the economy is facing.

It’s time to introduce a new kind of entrepreneur: the Mompreneur. She is a woman who, on top of tackling the challenges of raising children and keeping a house in order, is out there starting a business. It’s not as impossible as it sounds, as one franchising Mompreneur is currently proving.

Lisa Druxman is a mother of two and the founder of Stroller Strides, the fitness franchise for new mothers. It’s an innovative franchise concept that takes a lot of work, as Lisa told the Young Entrepreneur blog, when she outlined her daily schedule:

Wake up at 4:30 or 5:00 and grab coffee that has been pre-set and ready. Get on my computer and work on emails from about 5:00 – 6:30 when my kids wake up. I will do the mom thing and get their breakfast, pack my son’s lunch, get them dressed, etc. My son will go to school and then I will take Rachel to Stroller Strides class 3 days per week. My nanny meets me after class and I head right to the house to work. These traditional work hours are when I schedule my meetings, phone calls, etc. I work until about 4:00 when my son comes home from school. I then do the mommy thing again until they go to bed. Luckily, my kids go to bed early (about 7:00). I then work from 7:00 – 10ish and go to bed and it starts all over again.

But by the sound of it, Lisa is not phased by the commitment of running a franchise. She has a lot of interesting things to say to women who are looking to start their own business or open a fitness franchise. She has organically developed Stroller Strides into a thriving business and has this advice to offer to other women:

I hope that all women follow their dreams. I’ve learned that truly anything is possible. The only thing that separates us is those who think about their ideas and those who actually move on those ideas. Go for it. There’s nothing wrong with failure. You just brush yourself off, pick yourself up and go for it again. Approach life as if the net will always appear when you take a leap!

As signs continue to emerge that the global economy has overcome the worst of the recession, it’s interesting to see the topic of franchising making more and more headlines. We’ve always felt that franchising is the real economic stimulus plan and as the economy seems to be beginning the long journey back to stability, it seems that entrepreneurs are ready to take risks again and are seriously considering franchising.

Monday’s Wall Street Journal features a Q&A interview with Britt Schroeter, who runs Dream Maker & Associates LLC and has worked as an executive in franchise systems like Kiddie Academy International Inc. and Decorating Den Systems Inc. Ms Schroeter was asked to give advice to people considering franchising and had this to say about why now is a great time to consider franchising:

There’s been a thinning of the forest. Competitors who are undercapitalized may be going away. People with good credit are getting excellent interest rates now on loans. Cash is starting to flow at a brisker pace. The Small Business Administration will now guarantee up to 90% of each loan—it previously had guaranteed 75%—and the Treasury Department is purchasing more securities to open up the secondary market for SBA loans. I’m already seeing a positive impact from that.

And if you need space for your franchised business, it’s a buyer’s market. Landlords are more likely to cover build-out costs upfront and amortize them over the life of a lease. That wasn’t being done 18 months ago. Also, staffing talent is widely available—and a proven business concept and familiar brand name should help attract it.

Meanwhile, the Sun Journal of New Bern, North Carolina has a good piece on franchising, quoting IFA figures stating that “400,000 franchised businesses now employ nearly 10 million people”. The story interviews Jack Tetreault, who is a counselor with L-A Score, who talks about how franchising is thriving in his local community.

In our community we have seen the successful expansion of fast food franchises such as Dunkin’ Donuts, Tim Hortons and Subway Sandwiches, along with the already-established McDonald’s and Burger King.

As these stories show, franchising continues to thrive on the street level and we believe franchising will be something that we’ll be reading a lot more of in the coming weeks and months.

In this week’s episode of Franchise Update, we are focusing on a franchise which is really making a difference and hopeful news from the Small Business Administration.
Download the video by clicking here, or watch in the player below:
The HealthStore Foundation have created an exciting franchise opportunity, which is helping people in developing countries both start up their own business and also provide quality and affordable health care. People in countries such as Kenya, can set up Children and Family Wellness Clinics which offer the local population top healthcare and quality drugs at an affordable price. Visit the Health Store website to find out more or to make a donation. The Small Business Administration has reported an increase in the amount of loans available to small businesses. 35 % of the Administration’s 7a loans approved in February of this year were sold on the secondary market, which is up from 24% in January. To find out more visit the SBA website, or to find out more about SBA approved franchises visit our SBA franchise directory. Keep Watching!