Not long ago, I was asked if 2013 would be a good year to start a franchising career, not to buy a franchise but to work in the franchising industry. Specifically, the individual wondered if it made sense to work in franchise development, marketing, and sales. Well, that's a decent question and realize at the economy gets better the first thing you have to do is generate more sales and franchisors always need more cash flow, because that money is leveraged for faster growth and more revenue, almost like a jet engine on an airliner as it spools up to maximum power. Okay so let's talk. Check More About how much can you make owning a franchise
Is 2013 a good year to find a career in this niche area of the franchising industry in my opinion? Yes. Now some people believe that franchising is recession proof, I've often heard that said myself, but is it true? Well, not really you see in business, Nothing is recession proof, I like to say "franchising" is recession resistant. The problem right now is really about "loan qualification" and flexible franchisors on paying 1/2 franchise fee now, or willing to take retiring veterans and waiving the franchise fee for service to this great nation.
Another issue now is that ObamaCare is scaring away anyone who knows anything about running a business. So, it is really taking its toll on the small business community, much of the fear is overblown but not all, and what is a franchise but a networked group of small businesses sharing the synergies of brand, business plan, and high-volume buying? If smaller companies are having problems and franchisees are small time business owners, then even though their business models are highly evolved, they are still vulnerable.
If a franchisor's franchisees are failing in large numbers then the royalty revenue takes a big hit, so they have to cut back offering less help, thus accelerating a cascading effect unless the management of the franchising company has their act together. Meanwhile, litigation often appears as franchisees fail and try to shift the burden of responsibilities for monies owed back onto the franchisor, trying to break the franchise agreement covenants.
So, anyone wanting to get into franchising on the marketing side for franchisors needs to realize that unless they are with a well-financed franchisor, they could experience such a melt-down. On the positive side, during times of economic crisis, there are many franchise buyers out there who've been downsized, laid off, or lost their jobs. Providing they can get funding, there could be lots of sales. Many franchisors have had their highest revenue gains during poor economic times. That's always how it was for my franchising company. Please consider all this and think on it.