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Franchise growth in times of recession

Written by: Nick Strong

Article Overview: Remarkably franchise networks often grow in times of recession. Nick Strong, MD of www.selectyourfranchise.com looks at the reasons why and what action franchisors should be taking to get ready for network growth.

Franchise growth in times of recession

Franchise system growth in recession

Rightly or wrongly recent history shows that franchise systems can grow strongly in recession. This is because as job losses and redundancies kick in many workers decide not to return to the workplace as employees. After many years of dedicated services many hardworking employees that loose this jobs decide to take their destiny into their own hands. Even in shrinking or slowing market conditions franchising offers a more secure way into business for once employed individuals.

Prepare to grow

For franchisors that are recruiting now more than ever should be planning their network growth strategy. Franchisee recruitment is a slow process. As job losses kick in more and more people look to franchising to move their futures forward. It is vital therefore that both recruiting franchisors and prospective franchisees can find each other easily and quickly.

Visibility

Nick Strong, MD of www.selectyourfranchise.com explains that the web offers a 24/7 option for both franchisors and franchisees to start their due diligence and meeting process. It takes time to do the due diligence required on both sides. Franchisors should start their concerted marketing and advertising now to ensure that they are available and ready to deal with the influx of new enquiries and franchisee members to their systems.

Finance

Banks are still keen to lend to new and expanding franchisees. Credit ratings are now more important than ever with the banks. Franchisors should be working closely with the leading banks to ensure they can effectively support their potential new recruits in their approach to the banks for funding.

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  Franchise Blog
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Article Tags: banks, dedicated services, destiny, due diligence, finance, franchise system, franchise systems, franchisee, franchisors, futures, growth strategy, hardworking employees, influx, job losses, new recruits, prospective franchisees, recent history, recession, recruitment, visibility



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