FranChoice Hopeful that Tough Times Are Good for Franchising

Jeff Elgin, founder and CEO of FranChoice, a firm that sells franchises for franchisors, says that despite sales being down 25% in 2008 from a 2006 high, sales prospects are looking good for 2009.

. . . when the jobless rate begins to grow, as it did with a vengeance late last year, "interest in franchising takes off," Elgin said. "The collapse of the stock market only added to the anxiety that tends to motivate franchising candidates," he said.

Elgin has more than a three-month bump in revenue to support his notion that "2009 will be a giant growth year for us." Contacts from prospective clients interested in pursuing a franchise doubled in the past three months, compared with a year earlier — "a huge uptick in the front end of the activity pipeline," he said.

Elgin says that franchisor clients pay his firm "about $15,000 for each franchise sold."

And how does FranChoice find buyers?

FranChoice relies on the Internet to recruit clients, spending most of its $1 million marketing budget for online advertising at a large number of franchise information websites.

Read the article at the Star Tribune