While low unemployment levels are good for the economy, they’re not as helpful to franchisors that are looking to recruit new franchisees. As job security and wages increase, individuals are less likely to take the risk of leaving the safety net of paid employment as the potential rewards from acquiring and running a successful franchise are relatively less appealing than they previously were.
This creates a situation where franchisors have to compete more vigorously with one another to secure quality franchisees. Conversely, it places the franchisee candidate in a better position to negotiate on a franchise that best suits their needs.
DC Strategy’s research not only reinforces this message but has found that prospective franchisees are also becoming more sophisticated in their information gathering, opportunity assessment and negotiation processes. Read on.