Investor interest in the franchise industry has been waning for the past three years as the U.S. struggles to emerge from a national debt crisis while attempting to stave off the impact of a wider global financial crisis, but now the International Franchise Association is predicting growth in 2012. Prospective franchisees are attracted by the benefit of owning a business with national brand cachet, suggesting an easier transition into profit; however, buyers should do their homework before investing in any franchise. Things are getting better for franchisees as they move toward more equal rights in contracting with franchisors, but there are never any guarantees and “caveat emptor†continues to be sound advice. For more on this continue reading the following article from TheStreet.
In an uncertain business climate, the risks of starting a business from scratch are daunting. That’s why the lure of a franchise business can be so enticing: You get the challenge and excitement of a start-up, along with the advantage of brand-name familiarity and (hopefully) national marketing.
Although the number of franchises in the U.S. fell over the past three years — as did the number of new businesses overall — things seem to be looking up this year. According to the International Franchise Association, the franchise industry as a whole is expected to grow 2% during 2012, creating more than 160,000 jobs. Nearly 85% of franchisors surveyed said they planned to increase the number of establishments during the year. Continue reading.