Sunday, November 2, 2008
Slow Economy Spurs Franchisor Deals for Franchisees
Though the current state of the economy is making some would-be franchisees wary of making big investments, franchisors are coming up with creative ways of helping franchisees and wooing buyers. Franchise companies, facing competition for prospective franchisees are offering two-for-one deals, reduced fees, bonuses for buyer referrals, extended financing deadlines to attract franchisees. According to this article, one such example is Interiors by Decorating Den of Easton, Md., which says it has seen a 33% decline compared with last year. "In response, among other incentives, it is offering to finance up to 50% of the franchise fee (or up to $15,000) for qualified individuals with a minimum of $55,000 in liquid capital. People may have the skills but not the capital to launch a franchise, says Kevin Atkinson, Decorating Den's vice president of program development."