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5 Reasons Why Now Is The Best Time To Buy A Franchise

Guest post by: Cory Barber

Article Overview: Whether it's the top headline on the evening news or front-page news in your daily newspaper, we are consistently bombarded with bad economic news in the national media. With all that's happening, you could easily come to the conclusion that in today’s economy you would be crazy to consider purchasing a franchise. What the media forgets to mention, however, are all the "right" reasons for opening a franchise business in today’s economy. Here are 5 great reasons to buy a franchise in the current economic climate:

5 Reasons Why Now Is The Best Time To Buy A Franchise

Whether it's the top headline on the evening news or front-page news in your daily newspaper, we are consistently bombarded with bad economic news in the national media. With all that's happening, you could easily come to the conclusion that in today's economy you would be crazy to consider purchasing a franchise. What the media forgets to mention, however, are all the "right" reasons for opening a franchise business in today's economy. Here are 5 great reasons to buy a franchise in the current economic climate: 1. Lower Interest Rates: The prime rate is at a 10-year low. Franchise seekers with good credit histories can find excellent interest rates as the U.S. government maintains a low federal funds rate in an attempt to stimulate the economy.

2. Favorable Lease Arrangements: Landlords are ready to negotiate favorable terms when it comes to opening new franchise businesses.

3. Franchising is Viewed as a Favorable Business Option: One of the main reasons you are considering a franchise opportunity is to reduce your risks. You want to become part of a system with a proven successful track record. Banks and other lending institutions consider franchising as a safer investment than the "shoot from the hip" mentality of starting your own business from scratch. They know franchisors have a well-tested business model, provide initial and ongoing training, and offer continuous support to their franchisees.

4. Availability of Qualified Employees: As we know, the current job market is very competitive. People from all employment sectors are experiencing layoffs or downsizing. As you look for people to fill your open positions, it's highly likely you'll find more qualified workers to choose from.

5. Controlling Your Own Destiny: When has there been a better time to take control of your next career move? More and more, downsized and unhappy employees are deciding to pursue their dream of business ownership, instead of living with the unknowns of corporate America. By choosing to franchise, you become part of a proven, successful system that provides a great deal of support and knowledge to its franchise owners.

Many hugely successful business were born during the so-called "bad" economic times. Unfortunately, because the media is so negative, they tend to not choose to communicate the many advantages of buying a franchise during an economic downturn.

Several specific franchise models actually tend to thrive in a recession. As an experienced franchise consultant, I can effectively and efficiently streamline your entire franchise search process for you, sparing you all the aggravation of trying to go it alone.

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Article Tags: franchise business, franchise owner, franchise owners, franchising, successful business



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Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: UPDATES: New Campaign! New Layout! New Ideas! - We've also expanded the list for Contest and All-Time Leaders. It's great to now see David and Yinka on the All Time list and recognize the contributions they've made to the forums!


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