Pressure’s on franchising
Thursday, May 7, 2009/
Franchises under pressure? I note some franchisors are seeing a “glimmer” of an increase in new franchisee inquiry/interest. For some reason we have seen a dramatic increase in the inquiry rate from interested potential franchisees over the past three months. None of them are requiring vendor financing (albeit we are not a high initial investment franchise at only $55,000).
Our franchisees are not seeing a decrease in revenues, nor are they feeling the pinch as yet. They are seeing a few more of their customers go into administration but all within manageable levels.
We are not in retail and so this is an advantage and also we tend to thrive in recession as people use their phone more as they travel for business less. Different perspective on the recession and how it effects a franchise group I hope.