franchise

Old make way for new in the chain

There is likely to be a shift toward the secondary market in franchising, writes Julianne Dowling.

The franchise industry is likely to go through a huge ownership shake-out over the next 12 to 18 months and will require a large surge in capital, the head of an advice group says. Adrian McFedries, the head of DC Strategy, which advises clients such as Boost Juice, Fernwood Women's Health Clubs and Mortgage Choice and is expanding into the United States, believes it's the season of the seven-year itch as more franchisees look to sell their businesses and corporate executives, made redundant, seek to find a job through buying a business.

Rod Nuttall, the national account manager of corporate financial services for the Commonwealth Bank, agrees the pressure for funding will increase over the next decade. Read more...

Franchisers Sweeten Pot to Woo Buyers

Franchise companies, facing what many say is the toughest economic environment they've seen, are offering two-for-one deals, reduced fees and financing help to woo new buyers. They are also paying existing franchisees to help spread the word.

The economy has made many would-be franchisees wary of taking big financial risks, while others simply can't get the necessary loans. Meanwhile, competition among franchisers is growing, giving investors a lot more choices. There are now about 3,000 different franchise concepts, according to the International Franchise Association.

In a survey released last week of some 150 franchise companies, respondents said their franchise sales were about 72% below their 2008 goals, with inquiries from prospective franchisees down about 48%, according to Franchise Update Media Group, San Jose, Calif. Read more...

Companies Offer Innovative Incentives To Lure Franchisees as Competition Grows

Franchisers are becoming increasingly creative in marketing themselves.

Some are giving hefty discounts to franchise employees who want to become owners. One is introducing a "lite" version of its concept designed for those seeking a part-time franchise to augment their income. Another is offering a rare money-back guarantee.

As franchises proliferate and competition for new franchisees intensifies, franchisers are using such innovative tactics to ensure their own longevity and success. Read more...

On Franchising

More than 200 new franchising opportunities were introduced in the U.S. last year, underscoring the industry's enormous popularity here.

But which ones will be around 10 years from now, and which are simply somebody's make-a-quick-buck scheme?

Anyone considering starting a franchise needs to determine whether it is a legitimate concept, has legs and is appropriately priced, so as not to create a backlash among franchisees who feel misled on their investment. Experts who help would-be franchisers get started warn that many rush to market. Read more...

Brothers buy franchise that buys back phones

Two brothers, Randall and Mick Murry, have opened a Buy Back Cellular franchise in Lufkin Mall, according to a press release.

Buy Back Cellular buys and sells pre-owned cellular phones, regardless of the carrier behind them. It also deals in pre-paid cell phones Read more...