Ms schroeter the risk of becoming a franchisee in any

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
MS. SCHROETER: The risk of becoming a franchisee in any economic cycle is failure. The trick is to pick the right franchise regardless of the cycle we're in. Understand returns in up and down cycles. For the first-time businessperson, franchising offers more security since he or she is operating under a proven formula that removes considerable uncertainty. In today's economy, because a franchiser offers a track record, you're able to make better, smarter decisions by going with a franchiser than becoming an independent businessperson. To me, franchising is entrepreneurship with training wheels. WSJ: What advantages, if any, are there in becoming a franchisee now? MS. SCHROETER: There's been a thinning of the forest. Competitors who are undercapitalized may be going away. People with good credit are getting excellent interest rates now on loans. Cash is starting to flow at a brisker pace. The Small Business Administration will now guarantee up to 90% of each loan -- it previously had guaranteed 75% -- and the Treasury Department is purchasing more securities to open up the secondary market for SBA loans. I'm already seeing a positive impact from that. And if you need space for your franchised business, it's a buyer's market. Landlords are more likely to cover build-out costs upfront and amortize them over the life of a lease. That wasn't being done 18 months ago. Also, staffing talent is widely available -- and a proven business concept and familiar brand name should help attract it. WSJ: Is everybody potentially a franchisee?
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Page 2 of 3 2009 Factiva, Inc. All rights reserved. MS. SCHROETER: No. If I bring a candidate that doesn't fit the franchiser's profile of a franchisee, it does the franchiser no good, my candidate no good -- and it hurts my reputation. So if a candidate doesn't seem appropriate -- if they lack the basic skills such as a work ethic and communications skills needed for overall success with a franchise -- I will encourage them to focus on traditional employment.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern