Sign Of Recovery: Franchise Restaurants Selling Off Company-Owned Units

May 10, 2012 by Cris | 0 Comments

Forbes:

If you’re looking for a quick economic barometer, one good indicator is to watch the moves of the major franchise chains. When times are hard, many of their franchisees flounder, and the big franchisors end up having to buy back stores to keep them running.

When times get better, though, the folks back at headquarters usually remember that running scores of their own restaurants can cause a lot of problems.

For one, it puts the parent company in direct competition with its own franchisees, something franchisees tend to dislike.

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