At The ICSC: Lack Of Franchisees Limits Retail Growth

Mlive.com:

A lack of willing franchisees may be limiting retail in Michigan, some brokers say.

While the International Council of Shopping Centers RECon convention drew exhibits by hundreds of retailers, many of the stores do not have a presence in Michigan. That could be because of a dearth of willing franchisees, said Dave Denton, retail adviser with Grubb & Ellis|Paramount Commerce in Grand Rapids.

“We’re talking to franchisers that would like to be in Michigan, but there’s no franchisees,” Denton said from Grubb & Ellis’s corporate booth at RECon.

National chain Dunkin’ Donuts, coincidentally, Tuesday said it is opening western Michigan to franchise sales as part of an aggressive expansion program around the state.

Three or four years ago, Michigan saw an influx of franchisees, many of them terminated from corporations during mass downsizings. Those individuals used severance checks to start up their own franchises, Denton said, but a continued down economy in the state has dried up that well.