The franchising sector has had better years… does 2010 promise rosier times ahead?
A lthough the franchise sector abounds with hype and optimism, 2009 was not one of its landmark years.
A winding back in financial support packages for prospective franchisees, the slowdown in retail development creating fewer opportunities for new locations and uncertainty about economic conditions all constrained growth in retail franchising.
Australia’s better than forecast economic performance and lower job loss numbers over the year also contributed to subdued franchise sector growth with the number of potential investors with redundancy packages lower than expected.
There were not many new retail franchise concepts emerging in 2009 despite the accepted premise that the franchising sector often has counter-cyclical growth, generating more franchise opportunities and attracting more franchisees when the economy is sluggish. Continue reading this article.