Franchises Offer Security in Hard Times

The Augusta Chronicle ran a franchise story headline, “Chain operations offer some sense of security in hard times. It quoted brand new franchise owners, excited about their business dreams, and it featured a spokesperson for the International Franchise Association, a trade group representing largely franchisors.

“The advantages of buying into a franchise are buying power and constant support from the franchiser. It's the best way to go. If a franchiser has 300 or 400 franchisees, if it works for them, why wouldn't it work for you?" said Bud Evans, the owner of ColorTyme of Augusta, a rent-to-own furniture and appliance store that opened on Windsor Spring Road in May.”

The IFA SmartBrief summarized the same article with a headline, Franchise industry grows as entrepreneurs seek safer bets. I guess things must be so bad that any evidence of a new franchise owner is evidence enough that the franchise industry is growing.

Meanwhile, during roughly the same time as this story was being written, the head of the IFA went to the Treasury Department to say, "At least 200,000 jobs have been lost in franchised businesses and more than 15,000 retail units have been lost.” He was concerned that the SBA is creating a false sense of recovery, and was asking for a change in small business policy.