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Entrepreneurs need to get a sense of the franchise market before they invest in a franchise. Those who are fortunate enough to have bank support are crunching the numbers, wondering if a franchise investment really adds up. We have an interesting dispatch today from the ‘coal-face’ of franchising, which might hopefully convince people that this is a sustainable investment.

The business trade magazine IndUS Business Journal has a very interesting story in their March edition that examines the state of franchising. The story looks at franchises like Mr Goodcents, EduFit and the Driven Brands stable. These franchisors are all resolutely confident about the franchise industry and many say they have never been busier.

Franchise Direct CEO Sean McGarry was interviewed in the piece. He talks about 2010 with a whole lot of optimism as wel. We’ve excerpted the part of the article that features Sean below and we hope you find it insightful.

Sean McGarry, founder and head of Franchise Direct, a company that generates franchisee leads for franchisors through its Web site franchisedirect.com, said that business has never been better. “In the month of January we have never been as busy in terms of new franchisors and the people coming onto the site,” he said.

According to McGarry, in 2008 and into 2009 franchisor clients pulled back in terms of pursuing new franchise leads, but this started to turn toward the end of last year and the upswing continues into 2010. “I think we will see an increase in the number of new franchises as the economy begins to improve,” he said.

Franchise Direct, which is based out of Atlanta and Dublin, Ireland, also runs a number of other franchise Web sites that target countries beyond the United States, such as France, Spain, Germany, the United Kingdom, Ireland and Canada. Started in 1998, the company works with 1,000 different franchises. Clients include Subway, Arby’s and Little Caesars.

Economic woes aside, McGarry said that many franchisors over the last several years still had plenty of franchise leads, but there was more of a concern about the quality of the leads as people who lost their jobs looked for income. “It was a necessity rather than an option,” he added. “You heard a lot more people using the term •buying a job.’ • There was strong interest especially in low-cost franchises or home-based franchises [with a low barrier to entry].”

In McGarry’s opinion this turned some franchisors off and was viewed as risky, not wanting to take a chance on people making a decision to franchise because they were “desperate.”

“You are still looking for the types of individual that fits, that has skills in your area,” he said. “But I think what it has done is increase the pool [of potential franchisees].”

Like Driven Brands’ Schaefers, McGarry also believes the favorable real estate market will help coax franchisors into more aggressive growth plans in 2010. “Franchises are now in a strong position to negotiate on rent and leases,” he said. “That is a positive thing in the industry.”

We’ve published a range of exciting studies on franchising in the last number of months here at Franchise Direct, but our latest one marks a sort of milestone.

Franchise Direct has just released the definitive study on food franchising. After conducting some exhaustive research, we are excited to announce the publication of six brand-new reports on various food franchise sectors. Add these to our reports on pizza, ice cream and coffee franchising that were released last year and we’re proud to say that Franchise Direct has now produced the internet’s most comprehensive and insightful examination of food franchising.

Here’s why this matters- when people think of franchising, they think of food. Franchising has spread as a global economic concept thanks to the likes of Subway and Domino’s. Investors will always be excited by restaurants. Many people want to know how to how open a food franchise and how much it costs. We can now give you a snapshot of this whole diverse industry.

We have broken the industry into a number of sub-divisions and published brand-new studies on full service, fast food, fast casual, retail food, health food and take-out and delivery food franchises. These reports are based on the Franchise Disclosure Documents (FDD) of numerous franchises in each sector, plus some additional research.

These reports will give you all of the essential information you’ll need before investing in a food franchise. You’ll find up-to-date financial statistics on each sector, plus reporting on the rise of the health food restaurant and the enduring popularity of retail food distribution. There is also invaluable franchise-specific economic data taken from FDD’s that will tell you how many franchises are currently faring.

All entrepreneurs are told to do their homework before purchasing a franchise. Franchise Direct’s exclusive food reports take the hassle out of this research and make finding out about food franchising easier than ever before. There’s a lot of unique material here. Dig into these repots today.

The coffee franchising sector is recession-resistant and an integral part of American lifestyle — these were the findings of a recent Franchise Direct study of the coffee franchise industry. After examining the FDD/UFOC documents of 29 coffee franchises, Franchise Direct has found that this $11 billion industry, after weathering a slight dip at the start of the recession, is growing and diversifying, and thus presenting real opportunities for the future.

At the moment, the coffee shop industry is extremely competitive at the top and fragmented at the bottom. Starbucks, despite its recent struggles, continues to be the industry leader, with over 10,000 cafes around the world. Because of competition from fast food restaurants and convenience stores, coffee franchises, with their established brand identity, continue to be a reliable investment for those seeking to profit from this incredibly-popular beverage.

While the global recession has forced many consumers to rethink their spending habits, Franchise Direct’s research shows that America’s love affair with coffee continues unabated. A quoted poll tracking coffee consumption found an increase in coffee drinking last year in the pivotal 25-39 demographic, as drinking habits remained level amongst 40-59 year olds last year. We can safely assume that Americans will still buy coffee even as they look to cut their personal budget.

With coffee production slated to reach record levels this year, the right coffee franchise has enormous potential for profit. The population of Italy, for instance, is five times smaller than America’s, but the Italians sustain more coffee shops. A niche investment may be the ideal approach to fill untapped areas of the market. In line with the popularity of eco-friendly tastes, there has been an undoubted switch towards organic/fair trade coffee. Our report identifies this as a $1billion industry in itself.

Our study states that location is the most important thing to consider when purchasing a coffee franchise, with 75% of coffee business success pending on where it is situated. With that in mind, we advise prospective franchisees to consider van-based franchises or kiosk units, as they provide a cost-effective means of establishing a business. Beyond that, our study lists a number of other trends and factors prospective franchisees must consider before purchasing a coffee shop, such as ambience, marketing and staff. It is also worth noting that 65% of all coffee is consumed during breakfast hours.

Another reason to consider coffee franchises is the growing consensus among experts that coffee has a number of health benefits. Past perceptions that coffee presented health risks have been erased by authoritative research from universities like Harvard, UCLA and USC. In line with these studies, new polls of coffee drinkers show an acknowledgement of this new consensus.

People exploring franchises for sale will find that coffee franchises sell a product with broad public appeal that is seamlessly adapting to American consumer trends towards healthiness, social responsibility, and environmental sustainability.

Location and geography are intangibles in the world of franchising that end up having a huge effect on an entrepreneur’s ability to start and maintain a profitable business. Small businessmen and women are facing enough challenges at the moment, so navigating the pressures of geography in starting a business is a prerequisite.

Truly mobile franchisees and franchisors should take note of the Small Business and Entrepreneurship Council’s Small Business Survival Index for last year. The SBE ranks from one to 51 the best and worst states (with Washington DC included) to operate a small business. The index was created by tabulating a number of factors including taxes, various regulatory costs, government spending, property rights, health care and energy costs.

The most entrepreneur-friendly states are South Dakota, Nevada and Wyoming, while New Jersey, California and Maine are the three most difficult states to make a living as a small businessperson.

Anyone in the franchise industry considering uprooting to level the business playing field at this difficult time should spend a few minutes analyzing these statistics. Relocation might become a necessary move for entrepreneurs in the coming months, and it’s important to know the best places to invest.

Some interesting statistics on franchisors’ salaries have emerged in the last week. Over the past few months, Virginia-based company FranData Inc. has been soliciting franchisors for their payroll figures, in order to provide a broad look at pay across the franchising industry. The financial crunch has made franchisors much more cost-conscious, and by taking a bird’s eye view at the industry, and it’s safe to say they’ll find some interesting information here.

The Wall Street Journal described the FranData survey as “what’s believed to be a first-ever glimpse at how rewarding work at franchising companies can be”. The study reveals that the best paying managerial jobs are in the full-service restaurant sector, while the best-paid managers were in charge of legal departments or handling a franchise outlets site selection.

Follow the links to find specific info on annual base pay for franchise managerial and professional staff, comparative base pay by sector, and pay by franchise industry and size.