Mining Direct Capital Data: Steady Franchises

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PointBlank will occasionally slap on a miner’s hat and find the diamonds of data at Direct Capital. Today, franchise finance volume for 2011 thus far.

Getting a firm grasp on the franchise industry is not necessarily easy. Depending on who you ask, franchisees the world over are either struggling to come by financing or moving steadily along.

With the economy improving, I’m inclined to believe the latter. Naturally, I turned to our own in-house numbers and trend reports from around the nation to get a clearer picture.

I grabbed my metaphorical pickaxe and took a closer look at our franchise funding volume over the last six months. The data bore out what I had suspected coming into this post: Franchise volume by month was up, however slightly, from a year ago over the first six months of the year. It was even in line with our fall numbers from 2010, which tends to be the time of high demand for franchisees looking to grow, remodel or purchase equipment.

Our particular numbers are encouraging, and in this case, it’s out in front of general lending for franchises. It’s definitely a recovering segment, one that many economists predict will be critical to continued economic growth in the U.S., but one that’s moving slowly.

In part, that goes along with the increased demand and funding across most segments here at Direct Capital. But it is also a testament to the strength of franchises, which generally marry products customers want (hamburgers, groceries, carpet cleaning, etc.) with a recognizable look and feel. Many times all they need is the financing.

Hopefully, the steady growth grows and turns into something bigger for the sake of all franchises.

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