Franchise consultants with iFranchise Group, a leading franchise consulting firm based in the Chicago area, recently cited several market factors and franchisor success stories that point to a strong improvement in the overall health of the restaurant franchising sector.
Since the recession began, the tight credit market and lack of financing options had affected most franchises, and hampered their ability to sell and open additional locations. Recent improved access to capital and other factors are helping franchisors, especially those in foodservice, get back on track.
“While we are still in a tight credit market, franchise financing is much better than it has been over the last two years,†states Mark Siebert, CEO of iFranchise Group. “Franchisees are finding it easier to get the funding they need to open units, and we’re seeing more restaurant franchisors hit, and even exceed, their franchise growth goals as a result.â€