Why Franchising Can Be Your Best Investment In An Unstable Market

Franchise investment:Steady growth, international expansion, and new franchising concepts each year make this an attractive option for wary investors

November 28, 2007 – Fort Collins, CO – US Franchise News. The real estate market has experienced a dramatic slowdown. With very few exceptions, properties simply are not moving like they used to. It’s not uncommon for a nice house in a desirable location to remain on the market a year or longer before it’s sold. Nor is it unusual for a property owner to have to lower the asking price several times before an interested buyer comes along.

The stock market is just as dodgy with all signs pointing to a sluggish bear market on the horizon. It keeps losing ground as the various indexes (Dow Jones, Standard & Poor’s, NASDAQ) continue to drop. Investing in stocks is a risky undertaking nowadays.

So the big question on every investor’s mind is: Where can I get a good return on my investment in the midst of an unstable market?

For a growing number of investors, the answer is franchising. There is plenty about franchising that appeals to entrepreneurial types, from being your own boss to working with tested product & service concepts to receiving ample support from the franchisor. And the economic picture of franchising, by many accounts, is robust.

The International Franchise Association recently commissioned a study to explore the economic impact of franchising. The study reveals that the U.S. franchise market generates more than $1.4 trillion a year in revenue. This accounts for approximately 45% of retail sales—nearly half of all retail sales are made via franchise companies.

Currently more than 750,000 franchise businesses operate in the United States, and that number is growing, with many new franchise concepts premiering each year. In 2005 alone, there were 500 new franchise concepts, with another 300 franchises added in 2006. These new concepts run the gamut of innovation across all industries, including food franchises, home service franchises, business services, childrens franchises, and retail franchises. 

More than 18 million Americans are employed by franchises, and it’s estimated that one out of every 12 businesses presently operating in the United States is a franchise.

Based on these and other figures, the franchising sector is indeed booming, not only in the United States but in other parts of the world as well, including the United Kingdom, many parts of Asia (especially China and India), Australia, and Eastern Europe. Franchising is a growth industry that continues to spiral upwards, thereby positioning it as a smart investment for many, while many other industries and investment options stagnate.

By carefully doing your homework and choosing the right investment concept, you can invest your money into a franchise business that will yield a solid return on investment. For any investor wary of the present state of the economy, the growing franchising industry can be an attractive, lucrative option.

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Staffwriter: Graciela Sholander

USFranchiseNews, a division of Proven Business System and a privately held company, operates as an integral website presence representing the franchise industry for the purpose of educating and enlightening its viewers while also providing them with additional key information to further investigate their franchise of interest. This membership-only organization consists of franchise members and associates who contribute useful franchise information by means of an inter-active format. This serves to provide the viewers with current, accurate, first-hand information through the efforts of the franchisors as well as neutral points of view through the contributions of USFN staff journalists and legal associates. For membership inquiries please contact Gary at 1.888.300.3601 or director@usfranchisenews.com

Copyright 2007 USFranchiseNews. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without prior written authorization.

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