Franchisers Would Welcome Downturn
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The International Franchise Assn., which is holding its annual convention in San Diego this week, is hoping for a “damned good recession,” quipped President Don DeBolt.
That’s because a healthy stock market and rising economy have made potential franchise buyers less prone to “look at options,” or make bold career moves, such as acquiring a dry cleaning, hamburger, office products or automotive franchise.
DeBolt said U.S. franchises grew 10% last year to total about 300,000 outlets, about the same rate of growth as in 1998. But he said the 800 franchisers convening in San Diego spent an average of about $60,000 in advertising and marketing per “landed franchise” in 1999, or double the marketing cost in the early 1990s when times were tough.
Leading franchisers in 1999 included Taco Bell, Mail Boxes Etc. and Meineke Discount Mufflers, the IFA president said.
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