Joel Libava, The Franchise King, is a friend and colleague of Franchise Direct. But even if he we'd never been introduced to him, we'd still advise you to read his thoughts on how the S&P downgrading of America's credit rating will affect franchising.
Joel writes regularly for the great Small Biz Trends website and he's evaluated a very timely topic in his latest column. It's a time of great financial uncertainty - in America and Europe - but while much of it may seem like abstract high finance, it is inevitable that Standard and Poor's reassessment of America's credit rating will inevitably trickle down to the franchisor/franchisee level. As we've chronicled here, the issue of franchise financing has not gone away since America came out of recession and the S&P decision will only make matters worse. Joel's fears are not with franchisors - he describes them as an ''innovative bunch'', but rather with franchisees, who he feels will stay out of the market and continue with their own jobs.
Joel also provides a ten-step guide for franchisees who might be wavering on franchise ownership in the wake of the news. As he writes: "Even in volatile times, becoming a franchise owner is a viable option for those seeking change. If you’re thinking of exploring your options, doing so carefully and methodically will go a long way."