Franchise Ownership Offers Comfort In Tough Economy

Business Journal:

A period of economic uncertainty is not the time to sink one’s life savings into a restaurant or shop, but it may be the perfect time to consider owning a service franchise, according to local franchise consultant Cheri Carroll.

One factor in franchise choices is home equity - how many new franchisees financed their businesses in the past, she says.
‘Since equity loans aren’t as available or as generous as they once were, service businesses with their much lower entry costs offer a path that many are taking to beat the economic blues,’ said Carroll.

An 11-year volunteer with the San Diego chapter of Score, a nonprofit organization providing free consulting and inexpensive workshops for small businesses and new startups, Carroll was recruited by Score to provide franchise expertise.

‘While a franchised sandwich shop may cost $120,000 or more for the build-out and equipment, or $300,000 for a retail shop, a service business can cost as little as $20,000 to get started, with almost no overhead,’ she said.

Some growing service businesses among San Diegans are Gurnee, Ill.-based BrightStar Healthcare and Sandy, Utah-based Spectrum Home Services, which offer nonmedical services to seniors such as running errands and yard cleaning.

Consulting businesses such as the Carlsbad-based Expense Reduction Analyst, along with executive training services such as the La Jolla-based Renaissance Executive Forums also offer popular franchising opportunities, says Blair Nicol, president of the Louisville, Ky.-based Franchise Network Group’s San Diego and Orange County operations. Read full article.