Absence of Capital Damaged Many Franchises in 2009
Franchises had a difficult 2009. Lack of access to financing made it difficult for many franchises to invest and grow. With an industry-wide loss of 409,000 jobs, franchises are looking for broader sources of funding. According to the Richmond Times-Dispatch , banks and lenders are setting the bar higher than ever to lend money to a franchise.
The Timing is Right for Many Restaurateurs
Some start-ups are finding the economic recovery to be the perfect time to set up shop. Entrepreneur reports on how reduced rental costs, the availability of talent and customer expectations are creating a great environment for some restaurants. Everyone knows the prevailing wisdom about the restaurant business: It’s a bad bet, notorious for failure, with three out of four places closing within the first three years. But consider this: Studies have found the risk of closing is the same in good times and bad, according to Andrew Rigie of the New York State Restaurant Association. And the upsides to a down. Read More.
Could Franchising be the Best Option for You?
Small business owners just starting out have a catalog of concerns before even one product is put to market. Entrepreneur offers 10 reasons why a franchise can ease those worries, and set you up for success. [I]t’s nice to have help, and there’s probably no bigger source for startup help than a well-chosen franchisor. It’s why people look to franchising as a vehicle to drive their lifestyle and their income in the right direction. As a result, some are dipping in to their pensions and 401(k)s, withdrawing their faith in the stock market, and investing in a more manageable and profitable. Read More.
The Small Business Side of Fast-Food Bargains
In The Wall Street Journal this week, reporter Diana Ransom examines whether or not nationwide corporate promotional efforts are profitable for participating fast-food franchises: McDonald’s “Dollar Menu.” Subway’s “$5 Footlong.” Quiznos’s “Million Sub Giveaway.” As the U.S. tries to climb out of the recession, these bargain fast-food meals have become familiar subjects of TV ads and radio jingles — and for many consumers, they are some of the best food values around. But few of the hungry diners who bite into those discounted subs and burgers realize that their cut-rate meals can be a flashpoint between big fast-food companies and the franchise owners who. Read More.