A franchise news roundup from your friends at PointBlank.
Franchises On Top Of The World
Franchising tends to weather economic woes better than most segments.
The reasons for that are multi-faceted, as you might expect. Many franchises offer a comforting name and cheap prices, ensuring that they’re the first place people will go for a meal or a service they need when times get tough. Others just happen to be positioned in markets people need to or want to buy in even when things go south.
It seems that 2011 will go into the books as another quality year for franchises, and looming concerns of a recession in the year ahead assure us that franchises will continue to be valuable.
Altogether, there are about 785,000 franchised businesses across the nation, according to Alisa Harrison, spokeswoman for the Washington, D.C.-based International Franchise Association. That’s about 2.5 percent more than in 2010, but still shy of the roughly 792,000 in 2008, when financial markets collapsed in the fall and funding for start-up businesses all but disappeared.
By far, quick-service restaurants account for the highest number of franchised establishments at about 153,000, with personal services trailing at about 131,000. Franchises provide 7.8 million direct jobs and pump about $740 billion into the economy.
The final numbers for 2011 could be tweaked downward when the 2012 forecast is released in mid-December, but Harrison expects the year will end with positive growth in the number of franchised operations, jobs and economic output.
“Franchised businesses tend to do quite well during a recession,” she said.
If you’re reading this and you were considering striking out into the world of franchise…well, we hope we gave you something to think about.
Holiday Hiring Season Is Upon Us
Some franchises have already started their holiday hiring drives, but now it’s hit the quick service restaurant chains.
With demand growing exponentially as hungry shoppers stumble to restaurants from the shopping malls of America, it makes sense to get out there and bring new blood on board. It will also lead to a temporary drop in jobless claims, which is a good thing even if it doesn’t last a hell of a long time.
Information Technology Is Coming
Is another recession looming? BizEngine took a closer look.