Franchise Predictions For 2012

SmartCompany.com.au:

The year 2011 has provided many challenges for franchising. Further attempts by state governments to interfere with the legislative framework that applies to the sector nationally, along with a turbulent retail environment and a general shortage of franchise candidates have challenged almost all franchise systems operating in Australia.

Here are a few predictions for what the year ahead will hold:

1. European instability will affect access to finance
The euro crisis may well result in the failure of at least one European bank. If and when this happens, interbank lending will be severely restricted, and we may well see a repeat of 2008 when banks collectively reviewed their lending policies based on their access to funds. This could mean that getting and retaining finance to start or grow a franchise (or any other business for that matter), despite low interest rates, will be more difficult.

2. Franchisors will expand their range of recruitment incentives… full post.

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