When The Economy Goes Downhill, Franchising Booms

More companies are discovering how solid franchising is and are thriving even when the economy isn't.

Ken Hollowell, President of National Franchise Services, Inc. stated, “In today's tough economy, scores of skilled and educated individuals are finding themselves without jobs. In many cases, these newly laid-off individuals have been in the workforce long enough to have a solid skill set and enough money saved up-or a strong enough credit history-to go into business for themselves. Many will choose franchising”.

The franchising sector continues to prove its place in the U.S. economy. According to the International Franchise Association, the franchise sector grew by more than 18 percent from 2001 to 2005. During that time, franchising brought more than 140,000 new businesses and 1.2 million new jobs to the U.S. economy.

Particularly attractive in a slower economy is the likelihood for success franchising offers. The U.S. Department of Commerce assessed the failure rate for franchises as a miniscule 5 percent or less per year, with 86 percent still operating after five years. Estimates of failure for independent businesses indicate that 68 percent do not survive the first five years.

A survey conducted by ABC News, The Washington Post and Stanford concluded that 94 percent of people say they're willing to make changes in their lives in order to help the economy and businesses are positioning themselves to take advantage of this new consumer mind-set.

National Franchise Services, Inc. recently launched a national marketing campaign to open 25 franchise offices in selected cities to for the promotion of its services. National Franchise Services provides consulting services to both companies desiring to expand into franchising developing their business or concept either regionally or worldwide and those individuals looking to purchase a franchise business. The company also provides non-traditional funding for small to medium businesses through one of the best kept secrets in business funds, Reg D 504 Private Placement Offerings. To learn more about this effective method of funding, visit www.regd504.com.

For more information about franchising, check National Franchise Services’ site at www.nfsdev.com. For information on National Franchise Services, visit www.nationalfranchiseservices.com or call 407-443-1476.