“Softer Economy Brings Upturn in Franchising”
Business Journal of Charlotte (02/09/01); Gibson, Ashley M.

As is currently being demonstrated in Charlotte, N.C., franchises have terrific opportunities for growth during slow economic periods. The president of the International Franchise Association, Don DeBolt, explains, "When there is an economic downturn, or companies downsizing, a lot of people are out there for the first time in their careers and are looking for what they will do next. That's when they start looking at a franchise." With 320,000 franchises currently operating across the country, DeBolt says he expects 10 percent to 12 percent more franchise operations to be up and running over the course of the year. In Charlotte, McAlister's Deli, Smoothie King, and Two Men and A Truck are all reporting significant growth. According to Two Men and A Truck chief operations officer Les Wilson, franchises are desirable because of the protection they offer would-be entrepreneurs. Buying into a system that is proven to work offers some degree of comfort toward the investment, and having a strong national figure in your corner for guidance and legal assurance can be an invaluable benefit. To get involved, franchisees typically pay their franchisors an initial fee--usually between $25,000 and $35,000--and royalties. Some of the least expensive franchises involve cleaning companies, while the more expensive deals typically involve hotels.