5 Reasons to Buy a Franchise in 2012
NEW YORK (MainStreet) -- Even with predictions the economy in 2012 is expected to be as fickle as 2011's, many companies are still setting their sights on growth, so why shouldn't you?
One of the easiest and more predictable ways to do that is to look for those companies aiming to grow and buy a franchise.
|Franchising is doing better than most industries, experts say, and next year may be a particularly good time to own one. Five Guys is a burger chain with some 1,200 stores in development.|
Franchising means you run a business of your own, but with a proven method of success as well as support and marketing assistance from the franchisor.
Joel Libava, a franchise-acquisition consultant and author of Become a Franchise Owner! says franchising means building equity in a business, controlling the circumstances to reach your career goals and dreams and creating an opportunity for your children to join you.Here are some reasons 2012 is a particularly good time to own a franchise: 1. Credit is loosening.
In 2009, the franchising industry lost 400,000 jobs. Last year, the industry grew at just 0.03%, basically flat, according to Steve Caldeira, CEO of the International Franchising Association. This year, the industry was projected to grow jobs by 2.5% and economic output by 5%. The number of jobs added will likely come in a little below expectations, but that's better than a decline, Caldeira notes. "The big issue has been a lack of credit to meet the demand for [franchisors' and franchisees'] growth." Caldeira says. "We've been working really hard with the banking and lending community regarding that issue, and while credit is starting to loosen up a bit, we still have a long way to go." Additionally, there is still "trepidation" on the part of franchisors and franchisees to expand due to uncertainty and costs regarding changes in health care and what tax reform will look like in 2012 and beyond, he says.
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