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January 07, 2005
Franchising Trends for 2005
Entrepreneur magazine has the predictions for the "hot" franchise trends for 2005. They see franchises related to kids, seniors, fitness and weight loss, and technology as the hot areas this year. All four sectors have seen significant franchise growth over the last four years.
I would recommend being very careful about buying franchises in any of these areas at this point. Because they are "hot" means they will be pricy. If a franchise is over priced, it can hurt the entrepreneur’s chances for success by using too much precious start-up capital for fees that go to the franchisor for the privilege to get into their game. The best time to take advantage of a franchise is in its first year or two of growth. By now franchises in these "hot" sectors are probably relatively over-priced.
Entrepreneur magazine's list of the top 500 franchises can be found here.
Posted January 7, 2005 06:47 AM
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Dr. Jeffrey R. Cornwall: "I would recommend being very careful about buying franchises in any of these areas at this point. Because they are "hot" means they will be pricy. If a franchise is over priced, it can hurt the... [Read More]
Tracked on January 7, 2005 09:30 AM
at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
