While 2008 was not good for franchising in Australia, 2009 could be worse.

"As administrators and franchisees pore over the wrecks of last year, such as Midas, EzyDVD and Kleins, those considering entering the $128 billion-a-year industry should be more careful than ever, according to Frank Zumbo, an associate professor at the University of NSW's school of business and taxation." - Western Australian Today

The Australian academic went on to say:

"Aggressive expansion plans were a "recipe for disaster" if consumer spending continued to fall, and if franchisors cut corners on franchisee selection and training."

These comments should cause concern to those caught up in the latest aggressive recruitment drive by Bakers Delight who last week announced plans to recruit 150 new franchisees.

With the company posting only a $1.7M profit last financial year, down from the previous year, alarm bells should ring and prospective franchisees should look very carefully at this franchisors viability.

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