This year could be crunch time for the $125 billion franchising industry.
Low unemployment and the skills shortage have made recruiting franchisees difficult, and there is no sign of this easing. At the same time, interest rates are rising and the US sub-prime crisis is increasing the cost of capital and threatening to dent consumer spending, all of which could spell more sluggish sales for franchise chains.
But franchising is a resilient business model and offers many small businesses stability, systems, buying power and brand strength that could give them an edge over independent retailers and service businesses in a slowing economy. And there are still some services and sectors with good growth potential.
The past 4 years have brought good times for the franchising industry, with industry revenue growing at an annual average of more than 11% to reach $125 billion in 2006, up from $87 billion in 2003, according to the latest research from IBISWorld.
Franchising 2008 – Crunch Time: Challenges And Opportunities
February 1, 2008 by Cris | 0 Comments
In Franchise Ideas / Opportunities, Franchises, News
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