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Franchise & Business Opportunity News

What Is Ahead For Franchises in 2008?

Written on October 22nd, 2007 by Jack in Franchise Industry.

At brandEXPANSION we have read the Blue Chip Reports and the Wall Street Journal, listened to many of the “experts” and concluded that 2008 is going to be a good year to increase business. Maybe not an all out boom year, but a great year for steady growth.

We expect Franchisors to grow steadily, but have their growth moderated by two factors:
1. Strong employment numbers
2. The high cost of lead generation for franchisees

Those franchisors that are using brandEXPANSION will have a distinct advantage, quality leads at a reasonable price. That’s called integrity by some people, better check it out.

We are looking for very strong growth in light manufacturing, and retailers. Consumers seem to be hungry for new products with some added features and we are already seeing some of our clients look for huge growth increases in 2008.

Service industries are a little tough right now. There is a lot of competition and not much differentiation so growth may be confined to niche areas. So as a franchisor of a service business you may want to take a long look at how you differentiate yourself from the competition.

However, many service businesses have a huge advantage in that they do not demand a high traffic location and may have relatively low investment. Good locations for retail and restaurants seem to be at a premium and that will slow growth in some of these segments. So retail and restaurants have the demand, but may not be able to meet the demand because of locations.

The latest word is that smaller strip center occupancy rates are slipping a little, that may offer additional opportunities but it’s too early to tell yet.

All in all the news is good, but not great for everyone. If you want to maximize your strategy for growth talk to us, brandEXPANSION’s franchise development professionals can help you take advantage of the economy in 2008.