Saturday, March 29, 2008
Growing California Service Franchises offer Popular Franchising Opportunities in Tough Economy
Local California franchise consultant Cheri Carroll believes that a tough economic period may be the best time to consider owning a service franchise. According to this article, "One factor in franchise choices is home equity — how many new franchisees financed their businesses in the past, she says. Since equity loans aren’t as available or as generous as they once were, service businesses with their much lower entry costs offer a path that many are taking to beat the economic blues,” said Carroll. In San Diego, consulting businesses, executive training services and businesses that offer nonmedical services to seniors appear to offer popular franchising opportunities. There seems to be some support in the numbers. According to Carroll, “While a franchised sandwich shop may cost $120,000 or more for the build-out and equipment, or $300,000 for a retail shop, a service business can cost as little as $20,000 to get started, with almost no overhead.” Franchising appears to be doing particularly well in California. According to an International Franchise Association report sponsored by the U.S. Small Business Administration, "Franchise businesses now make up $1 trillion in U.S. direct economic output."