The News & Observer (Raleigh, N.C.):
If you’re in the business of selling franchises, a down economy is a good thing.
The allure of trying something new and being your own boss is a big draw for a lot of midcareer workers who have been laid off, bought out or are just looking for more stability.
Smart companies are trying to capitalize on the opportunity, pushing their franchise models harder and touting the best selling points of a franchised business: an established brand and support from the corporate parent. But even in the best areas for new businesses — the Triangle included — franchising isn’t a sure thing.
“If it was easy, everybody would own their own business,” said Jim Judy, a Raleigh-based consultant for FranChoice, a consulting company that helps potential franchisees find the right business for them.
Franchising is a successful business model for many small business owners. There are some estimated 854,000 franchised businesses in the United States.
Franchisees put $200,000 to $250,000 into opening the business on average, Judy said, though some stores can be much more costly. Franchisees agree to pay a percentage of their sales back to the parent company in the form of royalties, plus usually another chunk of sales for marketing. Read on.
Photo: Takaaki Iwabu.