News
Still a good time to expand franchising
October 12, 2008
The Dallas Morning News: For franchisers, tough times can bring a surge in well-qualified franchisee applicants as out-of-work executives look to create their own jobs. But this downturn is marked by a dearth of credit, something needed to do most deals. That's not stopping concepts from venturing into franchising—or chains from opening new markets.
For example, Checkers Drive-In Restaurants Inc. will arrive in Irving, Texas, to seek franchisees to boost its presence in the state, although a Checkers official acknowledged that tight credit already has scotched some deals.
"This is the tightest business credit market I've seen in my career, which spans three decades," said Darrell M. Johnson, president of Arlington, Va.-based FranData, a franchise research firm.And "both an unknown brand and an inexperienced franchisee represent more risk to the lender."
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