Franchising: A Fast Track For Growth?

Smartmoney.com:

Six years ago, flood waters from Hurricane Katrina put an end to Cathy Deano’s home-based catering service. Back then, the last thing the 57-year-old Mandeville, La., native imagined was launching another business — let alone a chain of 54. Yet a series of bring-your-own-wine painting classes hosted by Deano and a partner at a local art studio caught on, leading to extra locations in and around New Orleans, and eventually further afield. “We didn’t know anything about franchising,” says Deano. “It all happened so fast.”

For Deano and other small-business owners, franchising offers the chance of faster growth by selling a ready-made concept to aspiring owners, while tapping new markets and raising the profile of a brand nationwide. There are more than 3,000 franchised businesses in the market across nearly every sector, from retail to food, health care and leisure. After flattening out over the downturn, the number of locations they oversee is expected to grow this year by 2.5% to 784,802, up from just 0.3% in 2010, with franchisors facing fewer obstacles to expand, according to the International Franchise Association, a Washington-based trade group. Continue reading this article here.

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