Franchising Great Alternative in Today’s Economy
Tuesday, July 8th, 2008Franchise businesses have, over the years, been stable enterprises during economic ups and downs. As large companies search for ways to streamline their operations and reduce expenses, they often cut jobs and benefits.
One popular alternative in such difficult times has been small-business ownership as a means to pursue financial independence. Owning a franchised business entails purchasing the right to use the trademark and system of business. Franchisees may receive assistance with site selection of he business personnel training, business set-up, advertising and product supply. For these services franchisees pay an up-front fee and an on-going royalty, which enables the franchisor to provide support for the entire system.
Even amidst rising fuel prices and higher inflation, franchised businesses continue to operate in communities across the country. A recent report prepared by PricewaterhouseCoopers for the International Franchise Association Education Foundation titled “The Economic Impact of Franchised Businesses” revealed that franchise business growth between 2001 and 2005 outpaced other business sectors. The industry expanded by more than 18 percent, adding more than 140,000 new businesses and 1.2 million new jobs to the U.S. economy. There are now nearly one million franchised establishments in operation in the United States.