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Franchise development in 2009

Written by: Nick Strong

Article Overview: Franchise business can grow in recession. Nick Strong looks at some of the ways franchising can grow in 2009.

Franchise development in 2009

In 2009 the most important franchising news is that there is potential for growth. How can franchise business grow in a time of recession?

Many people are loosing their jobs as a direct result of the economic downturn. These people are, on the whole, hard working, intelligent and motivated. In an economic downturn skilled people loose their jobs though no fault of their own. These people have financial responsibilities that need to be met. Mortgages to pay and kids to feed and support.

Franchise development news - people of all ages can retrain and find new self employed carriers

Employers have sometimes been criticised by people that are over forty years old for being ageist. It can be harder to find a new job when a person reaches middle age. However, the good news is that franchise business welcomes more mature applicants. In fact over 70% of new and existing franchise businesses in the UK are owned and operated by people in middle age.

Why do people more mature people do so well in franchise business?

There are a number of reasons, some of which are that people in middle age:

Have good life experience
Can be good managers with years of experience
Have equity and assets to borrow against or use for the purpose of business building
More franchise news is that over 90% of franchise businesses are profitable. This gives tribute to both the franchisor and the franchisee. The franchisor has built a brand and know-how that is proven and reliable. The franchisee operates the brand and puts the know-how into practise. This combination means that franchise business has become a UK success story with over £13 billion being earned in the franchise sector during 2008.

In 2009 franchise business systems are focusing on growth. Yes it is true that no business system is free from the increased risks of an uncertain economy. However, when offering required and desirable services and franchisees follow the proven system provided by the franchisor, franchise business can protect itself and potentially grow in the current market conditions.

Franchising has been good news for thousands of new business people. Franchise business could be right for you!

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Article Tags: business system, criticised, desirable services, development news, economic downturn, financial responsibilities, franchise business, franchise businesses, franchise development, franchise news, franchise sector, franchisee, franchisees, franchisor, good managers, life experience, mature applicants, middle age, proven system, uk success



Related Forum Posts
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
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: Prospecting for a Franchise? Hold Tight - Franchise sales grew with the general economic growth in recent years, and are now contracting with the recent economic retraction. It is true that the best concepts will still have sales, but the ones most hurt at this time are those depending on financing for a large part of the development costs.
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.


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