Franchises Faring Well In SE Valley

Arizona Republic:

Even in a slow economy there is hope for entrepreneurs.

In the Southeast Valley, franchise companies are not only continuing to respond to urban growth, but are also seeing a rise in buy-ins from white-collar workers who are leaving corporate jobs or are affected by downsizing.

“If people are laid off, if they’re white collar – they have a severance package or 401(k), and they look at franchising as a good opportunity to use those resources and invest in a business for themselves,” said Alisa Harrison, spokeswoman for the International Franchise Association in Washington, D.C.

“The whole concept of franchising is you get the benefits of a national brand – the marketing, the training and the advertising support that you wouldn’t have if you were to start up your own business.”

And even when consumers are tight-fisted about spending, certain franchises still manage to do well, Harrison said. For 2008, America’s top three franchises are 7-Eleven Inc., Dunkin’ Donuts and Subway, according to Entrepreneur.com.

“Franchise businesses historically fare pretty well in good economic times, but also in slower economic times,” she said.

A number of national chains have expanded in the Southeast Valley or plan to open by the end of the year.

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Photo: Sherrie Buzby / The Arizona Republic