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Newsworthy Trends in Franchising

Written by: Ken Hollowell

Article Overview: Franchising is bigger than ever in our U.S. economy.

Newsworthy Trends in Franchising

When The Economy Goes Downhill, Franchising Booms!

More companies are discovering how solid franchising is and are thriving even when the economy isn't. In today's tough economy, scores of skilled and educated individuals are finding themselves without jobs. In many cases, these newly laid-off individuals have been in the workforce long enough to have a solid skill set and enough money saved up-or a strong enough credit history-to go into business for themselves. Many will choose franchising.

The franchising sector continues to prove its place in the U.S. economy. According to the International Franchise Association, the franchise sector grew by more than 18 percent from 2001 to 2005. During that time, franchising brought more than 140,000 new businesses and 1.2 million new jobs to the U.S. economy.

Particularly attractive in a slower economy is the likelihood for success franchising offers. The U.S. Department of Commerce assessed the failure rate for franchises as a miniscule 5 percent or less per year, with 86 percent still operating after five years. Estimates of failure for independent businesses indicate that 68 percent do not survive the first five years.

A survey conducted by ABC News, The Washington Post and Stanford concluded that 94 percent of people say they're willing to make changes in their lives in order to help the economy and businesses are positioning themselves to take advantage of this new consumer mind-set.

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Article Tags: franchise consultant, ken hollowell, our business, profran consultants



Related Forum Posts
Re: Re Franchise etc - [quote="bmueller47":e0j0nu4t]Can you see a shift of various types of franchises? What I am thinking about is that today it is more difficult to create franchises, that has great appeal. More and more people want to have their business, but no interference of someone else.[/quote:e0j0nu4t] Not sure what you mean exactly but it is certain that more and more people want to have their own business but not more and more people know what they really want to do, or how to do it. And that's what franchising is all about. Franchising is not for an entrepreneur. An entrepreneur will do his own thing. People who buy franchises want a turn key business, with a proven model. Franchising in the US had never been that good. I don't have the exact numbers in mind but I know for sure that franchising is growing more and more as people are getting more and more aware of this business model.
Franchising vs. Licensing? - What is your opinion on Franchising vs. Licensing? Which is better?
Nominations for a new Franchising Moderator! - Is there anyone you'd like to nominate as our Franchising Moderator (or volunteers for the position)?
Great Article, chock full of info. - Ian, Thank you for linking your article regarding Licensing vs Franchising. Its a good read.
Re: "Diversity" Is Costing Us Dearly! - Hi WendyGirl33, Thanks for this post. This is your 2nd post, not many have made such an impressive contribution to start with. Excellent. What can we say about this subject and be constructive. One thing is sure, nothing stays the same for ever. Trends change, fashions change, peoples perspective change etc. In fact we can never exhaust the continous changes that take place all around us. Many of the changes happen without us recognizing it until later; sometimes too late to stop it, if need be. PS, English is my second/third language. If you can write the above better, please do it an let me know. I want to learn to write better and better.


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