A wave of professionals investing buyouts and severance pay in franchises is giving this industry a sense of cautious optimism, according to franchise consultancy FranNet New Jersey. And existing franchisers are looking for ways to better retain customers as consumer spending falls, according to St. Jacques Franchise Brand Marketing in Morristown.
More franchisees may open up shop this year, according to Jack Armstrong, president of FranNet New Jersey in Metuchen. Armstrong said he has heard from more prospective franchisees in the second half of 2008 than in second half of 2007. During that time, he said his appointments to meet with prospective franchisees increased by 20 percent; Armstrong expects to see his appointments increase by up to 30 percent this quarter.
He said the abrupt drop in the stock market drove some professionals to look for new investment strategies. “People weren’t liquid,†Armstrong said, “They were leaving money in [the stock market], hoping it would get better.†Rather than wait for a recovery, he said, some believe a better return on investment may be possible through a franchise.
For those who have been laid off, severance packages may be an opportunity to try running a business. “A lot of these people have gone through downsizing before,†Armstrong said. “They don’t want to go through it for a third time.â€
Cartridge World franchisee Peter Donnelly said he left a sales career to open a franchise in Wall. Full story.
Photo: Steven J. Dundas.
