The StartupNation Blog Trends, tips and real-life anecdotes from industry experts

Franchising still offers viable opportunities for investors

Last week we took a brief glimpse at Wall Street and some of the good, and bad, news filling the media. Franchising, currently suffering like many other sectors, has historically outperformed other industries during economic downturns and subsequent recoveries. A few interesting points:

  • While dozens of retailers and corporate owned chains are expected to fail, franchises are expected to survive
  • Recessions and higher unemployment rates have historically provided a push to franchising
  • Post downturn, major growth is expected and well prepared franchise systems are likely to grow dramatically

So what does this mean? The strong survive and the very strong could potentially see dramatic growth and increased market share. The weak? Well, you get the picture.

As you consider investing, spend some time with with the Franchise Disclosure Document (FDD), particularly the sections with the financial, training and support information. And be sure you call, email and visit other franchisees for the system you are considering an investment as well as the competition. Ask them how much money they are making. Ask about the support. Also be sure you consider how much you are willing to risk to get into business for yourself. Some franchises, like Spring Green Lawn Care Franchise, will even require both you and your spouse are on board, ready and willing to join the team.

About the Author: Jack Burris

Jack Burris is president of Red Beard Marketing, a marketing, business development and brand consulting company based in Charlotte, NC. RBM is a full service firm, and we also happen to have a lot of experience in the franchise vertical [...]