Is Now the Time to Invest in a Franchise Opportunity?

There are several attractive incentives to investing in a franchise business. By buying into a franchise opportunity, you can take advantage of a proven business model and an established brand recognition, not to mention all the training and support that many of the major franchisers have to offer.

But with the economy in a recession, the question is should you take the franchising plunge now?

The answer really depends on the kind of franchise opportunity you are considering, as well as your available resources, your experience, and your level of commitment.


Here are a few facts to have in mind:

  • According to The Franchise Business Economic Outlook for 2009, the number of franchises will decline in 2009 by 1.2 percent, and the number of jobs in franchise businesses are expected to fall by 2.1 percent- a loss of an estimated 207,000 jobs.
  • Financing for small businesses (including franchises) is less available since banks and commercial lenders have tightened their loan requirements in response to the credit crisis.
  • Consumer confidence is holding at the lowest its been in years, which means less overall consumer spending.

 On the other hand…

  • Many franchising industry experts point to the fact that the franchising industry has emerged from previous recessions holding in a stronger position, as was the case after the recession of 2000-2001.
  • To attract entrepreneurs, many franchising companies are offering great incentive deals.
  • Start-up costs may be lower during the recession since property values have declined.

 For more information and advice on actual franchise opportunities, check out the AllBusiness Franchise Report.

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