While the franchise market in Maryland has continued to grow as many other sectors have suffered, interest in purchasing these businesses may have started to wane.
“Take over this profitable, turn-key operation,” begs one ad for a pizza carryout franchise in Frederick, on the market for between $250,000 and $500,000.
“Fantastic location in a busy shopping center,” exclaims another listing for a sandwich shop franchise, on sale in the same price range and boasting upward of $600,000 in revenue.
While franchise sales have weathered the economic storm well the past two years, they started to dip late last year, said Dale Cantone, deputy securities commissioner for the Maryland Securities Division of the Attorney General’s Office.
Total annual franchise registrations increased roughly 81 percent in the past 10 years, but dropped nearly 20 percent in the fourth quarter of 2008 from the fourth quarter of 2007, Cantone said, calling the decline “very unusual.” Still, he cautioned that the decrease should not be seen as a significant reversal unless the next quarterly report also reveals more declines. Read more.
Photo: Bill Ryan / The Gazette.