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Franchises Grab Their Piece of the Holiday Retail Pie

Written on December 17th, 2007 by Ryan Lee in Franchise Industry.

Despite all the gloom and doom predictions of a dire economy, Americans are expected to spend an average of $924 per person this holiday season. While that figure may not be growing at the same rate it has in the past, it’s still expected to be up 4 percent over last year. Given that franchising accounts for about 10% of the overall private sector output, it’s easy to see why the retail franchise sector is booming.

Retail outlets expect to make a minimum of 25 percent of their annual sales in the period between Thanksgiving and Christmas, it’s an extremely crucial period for retailers of all stripes. Franchises, though, offer a number of pluses over their competitors. Thanks to the power of name recognition — and the ease of returning gifts purchased in another location — franchises have a leg up on stand-alone retail outlets. But because many franchises are locally owned, they can maintain a higher level of customer service — with often an ability to resolve disputes immediately without getting into corporate bureaucracy. That gives franchises a locally owned feel above their chain competitors.

Thanks to the security that franchises offer — a higher success rate, marketing advantages and the ability to use a proven plan — franchisors in the retail sector are sure to win this holiday season. Beyond the retail outlets, though, a number of other franchises seizes a good portion of the market during this time period. Coffee makes a great gift and a number of coffee outlets promote special holiday baskets. Chocolate from companies like Schakolad and Fuzziwig’s, also see their sales rise this time of year. And pizza franchises, plus food and restaurant franchises feed throngs of hungry shoppers and provide catering for holiday parties. With all the excess between Thanksgiving and Christmas, it’s no doubt that health and fitness franchises will benefit in the coming months.

While it’s too late to grab a piece of the 2007 retail and related segments, if you’d like to explore opening a retail store or retail home venture.

For more, contact brandEXPANSION. We can help you secure franchise finance and navigate all the options to get your store open in time for the 2008 season.