If youâ€™re a middle manager who suddenly gets laid off, what do you do?
Franchisers contend that franchises are a natural alternative. They argue that their time-tested, how-to business model offers people a greater likelihood of success than striking out on their ownâ€”assuming that the franchisee is willing to play by the companyâ€™s rules.
But does a recession change those odds? And are there special challenges and considerations in becoming a franchisee during an economic slump?
The Wall Street Journal spoke with franchising consultant Britt Schroeter about those concerns. For the past eight years, Ms. Schroeter has operated Baltimore-based Dream Maker & Associates LLC, one of several dozen independent contractors for FranChoice Inc., an Eden Prairie, Minn., firm that tries to match franchisees with appropriate franchisers.
Ms. Schroeterâ€™s background includes executive stints at several franchises, such as Kiddie Academy International Inc., Decorating Den Systems Inc. and Sylvan Learning Systems Inc. Her husband is a franchisee for a chain that cleans, repairs and replaces laundry-dryer vents, so Ms. Schroeter is familiar with that side of the franchising equation as well.
Here are excerpts from the interview…