Are Franchise Companies Ready For A Growth Spurt?

                                                                                                                                             

Months and months of mostly negative discussions about a mostly negative economy have left a lot of us mostly...well...negative. Is there change in the air?

The phone calls and emails that I have been receiving in the last 60 days or so are decidedly different than the ones I had been getting since the middle of last year.

The differences;

• People that are inquiring about franchise ownership are very serious about making a change in their lives. They are not merely "curious" about franchising. 
• A high percentage of them are telling me that they are not prepared to expend a lot of energy on a job search, because of the sheer volume of job seekers out there.
• Even though word on the street about the difficulties of getting business loans is still negative, none of the prospective franchise owners who have contacted me in the past couple of months have voiced their concerns about getting a franchise business loan. 

                           {Here are my "7 Steps To Financing A Franchise}

Now, if I'm seeing an uptick in serious inquires, I'll assume that the franchisors that are looking to sell a franchise or two are also.

Franchise company execs; Are you ready for an uptick?

Find out by going to OPEN FORUM By American Express, where I am the franchise columnist. There are some really important things that you should be doing right now...

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Comments

[The Franchise King]

Michael,
Thank you. You are correct. I hope things loosen up in lending. Soon.

The Franchise King
Joel Libava

[Michael Tunstill]

Me too. I am noticing an upsurge in interest in buying a franchise, but there is still difficulty obtaining credit (as you noted).
If the financial institutions can think of creative ways to approve more loans it may just fuel the next boom.

[Rocky]

Help for franchises in this economy.
A new mobile webapp has been launched and is a great giveaway to franchise owners that have businesses along the side of the Interstate highways. Its called milesurfer.mobi and it is a free mobile highway portal for travelers along the interstates. The Basic Ad listing is free to any businesses within 5 miles of the Interstate highway.

It goes beyond the traditional GPS and billboard as it can contain more information about your business, is text based so you can reach many more travelers cell phones, can be updated immediately on the fly, and very easy to use. The potential for your business with this app is phenomenal. Think of a twitter like app for businesses. Check out more information at
www.milesurfer.com -
Yes i did say it was offering a Free basic listing. Its smart business to at least check it out.www.milesurfer.com

[Chuck Bongiovanni]

ABsolutely agree with you. Our closure rate is sky high as opposed to the franchise industry a few years ago

[Sammy Niche]

Can I spend a couple of words on the franchising business model?

Franchising refers to the methods of practicing and using another person's business philosophy. The franchisor grants the independent operator the right to distribute its products, techniques, and trademarks for a percentage of gross monthly sales and a royalty fee. Various tangibles and intangibles such as national or international advertising, training, and other support services are commonly made available by the franchisor. Agreements typically last from five to thirty years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees.

Franchising has been around for many centuries but didn't come to prominence until 1930's, the establishments of electricity, vehicles, and the Interstate highway helped propel modern franchising, most notably franchise-based food service establishments. According to the International Franchise Association approximately 4% of all businesses in the United States are franchises.