Page 35 - 914INC - Q1 - 2013
P. 35
As mom-and-pop shops close
and franchises become increasingly popular—an economic forecast for 2013 prepared by research firm IHS Global Insight projects about a 1.5-percent growth in the number of US franchis- es—many franchisors like Fox are asking themselves just how sure this model is.
A2010 report by the US Census Bureau found that franchise busi- nesses accounted for more than 10 per- cent of businesses with paid employees in the 295 industries for which data
was collected in 2007. That means
that, nationally, 453,326 establishments were either franchisee- or franchisor- owned businesses, and, according to
the International Franchise Association (IFA), that accounts for just over 8 mil- lion workers earning more than $304 bil- lion in pay, and participating in almost $802 billion in sales. It’s not just fast- food joints, either. Franchises provide almost every kind of product and ser- vice, from pet-poop scooping and gum removal to pre-schools. Like virtually every other sector, franchising has taken a hit during the recession. Yet, in addi- tion to that projected national increase, IFA estimates that in 2012, there were 3,913 franchise businesses just here in Westchester County.
Clearly, they’re a popular option for entrepreneurs new and experienced. Many would-be franchisees see estab- lished product demand, client bases, infrastructure, and, above all, results—a sure-fire firm willing to share its success with anyone possessing enough pluck
to ask for a piece. But is that all there is
to see? Are franchises always the right choice? “The myth that buying a fran- chise, especially a big-name franchise, bestows some sort of magical protec-
tion on the franchisee is both false and dangerous,” says Sean Kelly, a 20-year franchising veteran and publisher of Unhappy Franchisee (unhappyfranchisee. com), a website devoted to the pitfalls of franchising.
Content Licensing for Every Marketing Strategy
Leverage branded content from 914 INC. to create a more powerful and sophisticated statement about your product, service, or company in your next marketing campaign.
Contact Wright’s Media to
find out how we can customize your acknowledgements and recognitions to enhance your company’s marketing strategies.
For more information, contact Wright’s Media at 877.652.5295 or at www.wrightsmedia.com
Where Life Meets Style.
Spacious studio, one and two bedroom furnished and unfurnished ultra-luxe rental residences with business-class services. Located in the heart of downtown White Plains, steps from the city’s best restaurants and shopping, and just two blocks from the Metro North Train Station with direct service into Grand Central Station. Distinctive floor plans, unparalleled services and resort-style amenities.
AVE
FULLY FURNISHED FINELY APPOINTED FLEXIBLE STAY ACCOMMODATIONS
AND UNFURNISHED RENTAL RESIDENCES
WHITE PLAINS 25 MARTINE AVENUE 914.220.5700
AVELIVING.COM
Putnam County resident George Sichler would probably agree. He and his wife thought they were on the right track before purchasing their former Mount Kisco franchise, Whiskers and Paws, which home-delivered cat and dog food. The first several months went smoothly, but when the franchisor ran out of money, “the proprietary products I ordered and paid for were not filled,” Sichler says. “I placed an order for about eight thousand dollars’ worth of product and never got it; I was totally defraud- ed,” says Sicher, calling the owner
“a con man.” Sichler says his
startup costs were about $25,000.
➔
westchestermagazine.com
33
