Franchise-Funds.com Program Description

The first and foremost factor affecting franchise sales is a rising unemployment rate and the fear of losing one’s job. While that news is terrible for the economy, what this means for franchisors is a larger pool of franchise candidates. Every 0.1% increase in the unemployment rate adds another 150,000 prospective franchise buyers to the marketplace.

The second major factor affecting franchise sales is the stock market. Again, bad news for the economy can mean good news for franchisors. When the stock market bubble bursts, money flies out of the market – and, in many instances, into franchises.

The third driver of franchise sales is credit availability. Although money is tight, even franchisors with large investments are still making franchise sales – and almost all of these new franchise sales are financed. Yes, credit is tighter. But deals are still getting done.