Franchising comes easier to experienced developers

Franchisers have stepped up incentive programs to help entice would-be entrepreneurs in a down economy, reports The Los Angeles Times in a recent article. But longtime franchisees caution that success, if it comes, will take time.
For example, entrepreneurs may have trouble franchising or getting a loan for just one restaurant, according to Brentwood Associates managing director Rahul Aggarwal. The consumer brand private equity firm’s portfolio has companies that own Taco Bell, Pizza Hut and KFC franchises, among others.
“More companies, particularly those who want to grow aggressively, are wanting to get in bed with experienced developers who have a lot of cash, and can open multiple restaurants as opposed to one-off deals,” Aggarwal says in the LA Times article.