Franchising The Economic Downturn

Black Enterprise:

They encompass everything from fast food to educational programs.

And some think the litany of franchise operations could be the security net many business owners are looking for as economic conditions worsen nationally.

‘Franchising does seem to weather downturns fairly well,’ said Terry Hill, a spokesman for the International Franchise Association.

He said the number of franchises nationwide boomed in the last economic slump when workers grew tired of fearing for their jobs.

Dubuque appears to be on the radar screen of some franchises looking to expand. At least 3 franchise operations are planning to open stores in the area in the next year.

HoneyBaked Ham Co. and Cafe plans to move into 7 cities in Iowa, including Dubuque. The company expects to launch a store and cafe that will constitute an estimated $350,000 investment.

‘It’s like a small speciality grocery store,’ said Jim Squire, director of franchise development.

Although a location hasn’t been selected, the company hopes to have the store operational by late fall. Continue reading…