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What trends do you see forthcoming in franchising for 2008?
Although my crystal ball is no more accurate than a non-franchise person, I think it’s safe to say that new franchise offerings will continue to roll out in greater and greater numbers. Today there are nearly 3,500 different franchises spanning nearly 100 industry segments (printing, pizza, dry cleaning, etc.). In 2006 I believe that roughly another 100 offerings came to market and the trend will continue.
Of course, with large numbers comes the increased potential for errors (problems), and I see that many franchises are going to market with systemic problems in planning, concept, or delivery. In other words, the less tried and proven the franchise offering, the less evidence that it’s a good investment. Hence, franchise due diligence becomes an even more critical consideration.
So, I believe that more, but not necessarily great, options will becoming available, and that event had better trigger more informed decisions through excellent franchise due diligence.