Loading ...Franchising making headlines
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.
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In these hard economic times and when one’s morality is being compromised. There are really no shortcuts, even in franchising. Also, I agree that franchising is not recession-proof.
One must do his or her research. Do not be in a hurry. Keep in mind that you are using your savings that have been well earned through the years. Do not be fooled with glib tongue scammers. As investors, we are all accountable to our business decisions and actions.
I did the same thing and made it as a successful multi-unit franchisee. Now I have written an ebook to show others how I do it as well http://www.bestfranchisebooks.com. As they say “Pay It Forward”. This is my way of giving it back. May this serve as a guide to future franchisees and an inspiration to existing ones.