Recession May Lead to Increased Franchise Interest
The title statement of this article is becoming a resonant battle cry for entrepreneurs and investors alike worldwide. With the current economic downturn, business owners and those seeking new profitable ventures are echoing the same mantra:

Franchises are a secure, viable and profitable option in a recession, much like this latest article, from PRWeb conveys again:

Previous Economic Downturns Fueled Interest in Taking Control of Career and Family Futures through Franchise Ownership
Richmond, VA (Vocus/PRWEB ) March 26, 2009 — If previous recessions are any indication, we may begin to see increased interest in entrepreneurship, including proven franchise opportunities. After completing exhaustive and unproductive job searches, many experienced managers will likely reach the conclusion that they will have to take control of their own destinies by going into business for themselves.
“Historically, we have seen that a prolonged economic downtown causes many individuals to think about going into business for themselves,” said Chris Grandpre, president and CEO of Outdoor Living Brands, a Richmond, Va.-based franchise company focused on outdoor living products and services.
“Some of these individuals have completed exhaustive job searches and cannot find an appropriate position, while others are concerned about continuing layoffs. In both cases, these individuals are ready to gain greater control of their professional and personal lives by running their own businesses.”
Starting a new business, of course, comes with substantial risks. One of the most common ways to reduce this risk is through franchising.
“Franchising offers a way to go into business for yourself, but not by yourself,” Grandpre said. “Research sponsored by the International Franchise Association has shown that franchise businesses have a higher success rate that go-it-alone enterprises. You have a proven product or service, recognized brand name, training, technical support, operational systems and marketing infrastructure already in place. The key is first to determine if you are a good candidate for being a franchise business owner and, second, finding the right franchise opportunity for you.”
Because the stakes are high in franchise recruitment - for both the franchisor and franchisee - the best franchise companies devote considerable resources to the franchise recruitment and evaluation processes. To make sure the fit is right for both parties,
Outdoor Living Brands has a highly disciplined method for each inquiry it receives for any of its three franchise opportunities - Archadeck, Outdoor Lighting Perspectives and Mosquito Squad.
All aspects of a potential new franchise relationship are covered during the Outdoor Living Brands’ recruitment process, from the basic investment requirements and franchisee support to organizational skills, training and self-motivation. The company is highly selective and only a small percentage of franchise inquiries result in the launch of a new franchise location.
“When talking to potential franchisees, we discuss their careers, lifestyle objectives and the economic livelihoods of their families. This is a responsibility - a moral and ethical responsibility - that we do not take lightly,” Grandpre said. “From the franchisor’s perspective we must make the right choice because a franchise agreement is a long-term contract - somewhat similar to a partnership. If we don’t make a good selection and the fit isn’t right, then we will miss important growth opportunities in key markets over an extended period of time. Also, the candidate will be making a substantial investment of time, energy and capital so it is equally important that the fit is right from their perspective.”
Some franchise opportunities require substantial investments in bricks and mortar, while others, such as those offered by Outdoor Living Brands, can be operated as home-based businesses, which greatly reduces initial investments, an important consideration in today’s tight credit markets. Work schedules and time commitments also vary greatly from one franchise opportunity to another.
“Retail opportunities can be very time intensive and confining because you have to keep the ’store’ open,” Grandpre said. “Our franchisees enjoy greater flexibility in their schedules because the business model is based on appointments. The model is also ideal for couples who want to work jointly in the business with time commitments varying for each partner.”
As with any new business agreement, the consideration process requires candor and due diligence on both sides.
“We are highly disciplined in our search to find the right franchise partners with the skills, talent, drive and ambition to be successful,” Grandpre said. “When we make the right selection, nothing gives us greater satisfaction than watching our franchisees enjoy the success and lifestyle rewards of their business.”

Visit us today and learn more about International Franchising

If you have a good head on your shoulders and the drive to be your own boss then exploring the opportunities available through international franchising may be right for you. Before you leap into any business venture, make certain you learn as much as possible about your next potential endeavor. Start preparing now!

A Brief History of Franchising
The earliest signs of franchising in the United States date back to the 1850’s just after Isaac Singer invented the Singer Sewing Machine. During Singer’s search for an effective and affordable way to distribute his product for his company, the Singer Sewing Centre, he ran into problems that prevented his company from becoming successful. His first problem was a lack of capital for manufacturing his machines. Secondly, no one was willing to buy his machines without first being taught how to use them, which required effort that most traditional retailers could not provide. Singer’s solution was to charge licensing fees to business people who would own the rights to sell his machines in certain geographical areas. They would also be responsible for teaching consumers how to use his machines, thereby creating sales opportunities. Using the licensing fees to fund manufacturing, he was then able to afford to build his machines and then ship them directly to his newly formed distribution network.

Like most prosperous business ventures, Singer’s idea got noticed; and over the next several decades, many other companies began to copy and enhance his business model. At first, companies like Coca-Cola introduced franchising into their bottling and manufacturing areas in order to reduce financial risk. Later, companies such as McDonald’s and Burger King took franchising to a whole new level by creating some of the largest franchise networks in the world. Today, there are thousands of successful franchise companies with outstanding business models that provide products and services to consumers and businesses all around the world!

Some Advantages of Owning a Franchise Company
As a new, ambitious leader-in-the-making within the international franchising industry, International Franchising Group invites you to explore all of the available opportunities by which you can tap a new frontier, help stimulate the world economy, create an enterprise all your own, and make a successful living with high revenue.

Don’t let the seemingly overwhelming process keep you from the most promising business venture of your life. Our resources are comprehensive, our professional services are thorough and flexible, and our associates are some of the finest people in the franchise industry worldwide. You have all the freedom you need to start working now. We’re here to help: Visit www.intfran.com for more details.

Starting a franchise is a lot like cloning a successful business and opening it in your own territory. The only real differences include the motivation and talent of the new owner (YOU) and the opportunity presented by the location in which you decide to open the business.

Some of the most important advantages of owning a franchise include:

•Training - Nearly all franchise companies provide you with all the training you need to become successful. After all, they have a vested interest in your ability to run the franchise profitably. They want you to succeed and are willing to help you achieve that success.

•Brand Awareness - It can take years for a business to successfully build a well recognized brand that drives sales and provides an advantage over smaller competitors. It is true, especially in an international franchise market, that brand awareness can make or break a business. Consumers buy things that they are familiar with and patronize businesses they know and trust.

•Purchasing Power - Most franchise companies have the opportunity to purchase all their goods, products, and supplies at reduced rates because they buy wholesale. These savings can be passed back to each franchise unit immediately. This cash stream and purchasing power combo can provide a competitive advantage in the marketplace.

•Proven Business Plan - Running a successful franchise business is similar to learning a math formula and following its rules and laws repeatedly. Through years of experience, international franchisors know what works and will teach you their formulas for success.

•Speed Up the Process - In addition to an established brand, most franchise companies support their franchisees with local, national and even global advertising and promotion to help drive sales and expedite an otherwise slow-moving ‘startup’ period.

•Support - Successful franchise companies provide ongoing support for their franchises and franchisees. This usually includes ongoing training, system upgrades, product enhancements, as well as question and answer support systems using dedicated representatives within the organization.

Create a Checklist before you Consider Purchasing a Franchise – LET US HELP!!

•Employ a Franchising Consultant with ambition, networks and know-how (CLICK HERE)

•Consider hiring a lawyer and an accountant.

•Ask questions to understand all disclosures, franchise agreements, and other legal documents. Ensure you go over these materials yourself, as it is very important for you to have an intimate knowledge of this information.

•When dealing with the franchise sales team, do your best to verify claims made by the salesman. Ask for quotes and terms in writing. Whether intentional or not, it is understandable to recognize that some sales people tend to exaggerate the truth from time to time.

•Investigate the countries, cultures and economics of your international franchise target markets.

•Analyze your market and make sure there is a need for your product.

•Contact both current and previous franchisees and ask them for both the positives and negatives associated with owning a franchise. Ask the franchise company for statistics relating to success rates.

•Make sure you are appropriately funded. A lack of capital could turn all of your early expenditures into a complete waste.

•Meet the key management figures of each franchise company. This is especially important for smaller franchise companies. Do everything you can to get to know both the company’s executives and their field representatives.

p>The 18th annual International Franchise Expo is right around the corner! The IFA sponsored event, held in Washington D.C. will run from March 20 - 22, 2009.

As we approach this pinnacle occasion in the Franchising industry, it’s only fitting for our International Franchising blogosphere to bring you some notable morsels to whet your appetite for what is sure to be an outstanding exhibition this Spring.

Among the current points of interest, are two featured videos from the IFE website. (also available at www.ifeinfo.com). Check ‘em out below, and enjoy a little teaser of what’s to come.

Experience the IFE

WHO ELSE WANTS TO BE A SUCCESSFUL FRANCHISEE?

More to come very soon. The IFE event kicks off tomorrow, so I will be sure to have more stuff to share about the stellar event, as well as some inside info and as much coverage of the Expo as we can muster!

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You recognize the importance of owning your own business. The rewards drawn from succeeding with your own enterprise go beyond the typical benefits of being your own boss and making money. Yet there still lingers a shadow of hesitation while we consider the state of the economy. But in the franchising arena, especially on the global scale, one company is here to proclaim: The time is Now.

That’s why it is worth taking note of a fresh, breakout industry-leader-in-the-making, dubbed “IFG” or International Franchising Group. Among its company tenets is the importance of grabbing these opportunities now, and picking the low hanging fruit with the keen timing required in the franchising business.

Perhaps the best way to look at these ideals is with a simple list, as shown below, that reflects the indisputable top five reasons why you should start a franchise in 2009.

TOP FIVE REASONS TO START A FRANCHISE IN 2009

1. Because with jobs growing scarce, unemployment on the rise, and little hope for smaller companies in the near future, there is no longer any “Job Security”.

Strategy: Franchising ventures are far more likely to succeed than other entrepreneurial ventures because of the business model. While you still own your own business, you have the backing and support of a larger organization. You can be in business for yourself, but not necessarily by yourself.

2. We’re facing a Recession. Bad for some, good for Franchisors .

Strategy: There are myriad Franchise-based businesses that, by their very nature, are resistant to recession. Hopefully you won’t have to switch your ventures or your career for more stable arenas within the economy. But if you do, or if you’re not already anchored elsewhere, the franchise opportunities available in a recession will not only be safer, they will be more profitable.

3. Because investments (and the Stock Market) are unstable.

Strategy: It should delight you to remember that your retirement savings can actually be your source of franchise financing and you may be able to borrow from “yourself” without penalty! A franchise financing specialist can help you use your own hard earned money to invest in a franchise business. The best part: When you repay the loan, you’re repaying yourself!

4. No Government Bailouts are heading your way.

Strategy: There really is no reason to await the assistance of government programs, especially if you already own a franchise. That is, because if you’re a franchise owner you probably were not in need of such handouts in the first place. The franchise industry is strong, resilient, and you are managing it yourself, with very little cash-flow issues barring your continued growth.

5. Base costs are low. Rental property and fuel are cheap. Why wait for prices to increase

Strategy: The simplest of economic principles dictates one should ‘buy low, sell high’. Starting your franchise business now means making the smart choice of ‘buying low’. Establish property leasing or ownership while the costs are low. Reap the benefits of stable, yet reasonable, fuel costs (which also govern shipping rates). There is no time like the present, especially when startup costs are low.