Monday, March 17, 2008

Is the Fast-Food Industry Losing its Grip on Franchising?

The Wall Street Journal's recent evaluation of high-performing franchises, appears to indicate that fast food franchises are loosening their grip on the franchising industry while franchises in the services industry, such as health and fitness, security and consumer services are taking their place. According to the article, "fast-food and casual-dining businesses, while still showing strength, with eight names on the list, also are facing pressure from wage and food cost increases. To lower operating costs, several food franchises already are shuttering some locations." Among the high performers on the WSJ list were Home Instead Senior Care, Abbey Carpet & Floor and The Maids International. According to the article the list is diverses. "In fact, there are now more than 230 lines of businesses that do franchising, according to FRANdata, an Arlington, Va., independent research firm that helped analyze franchise data from the past three years and compile the list."

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