You're watching...
No Limit Media Consulting CEO Nick Powills on the pros and cons of starting a franchise in this economic environment.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
How has the franchise industry been coping with the fiscal uncertainty coming out of Washington and could there be a more lucrative franchise sector to move into in this new year.
101000 Powell's no limit media consulting CEO and founder welcome.
Thank you thank you for having me.
I have to imagine this is probably one of the most difficult and challenging time to be considering.
Going into the franchise business given the tax uncertainty coming out of Washington when he think.
Well it's obviously dependent on the way they look at the statistics I think it's actually a great opportunity to get into the France's industry right now with great real estate and obviously some of the benefits that come along with construction costs going down BS from tax inserted me it's definitely a challenging time for -- zero.
That's a great -- you bring up -- construction costs real estate values are still depressed even though the industry as a whole is.
Is coming back quite -- enough to offset what could be higher taxes especially for looking at at 250 threshold which -- you know many small businesses.
Declare taxes at that level.
Yeah I would say many franchise doors there are somewhat concerned with taxes.
High percentage of them.
I would say the fear of the unknown is probably the biggest challenge that franchise -- have to overcome.
For franchisee though there's tremendous opportunity out there and at the end of the -- taxes or.
Or obamacare will not influence negatively.
Those are gonna do a great job of opening our business.
Because of the political climate -- 2013 year of the service franchise.
Child care senior citizen care and moving companies -- that.
Well absolutely it's going to be the year of that because they're lower start -- costs I think those who are wanting to open up their own business right now we're looking at.
The businesses that are going to be able to make the most money that's obviously being passion about it is is critical I would -- majority of franchisees.
My come to the table -- -- -- -- opportunity is going to be more sexy.
I -- -- -- of the day you're gonna make more dollars -- and on the back hands with a service brand then then and he's.
I don't see an excellent weren't -- a -- and restaurants.
Sorry to catch up its -- in more detail why the restaurant industry is.
Taking a back -- now on the industry shifting toward those sectors that we're just talking about movie that I care etc.
There wouldn't say it's.
Because financially you're gonna take a lower net percentage typically -- Iraq front branding -- -- service brand so.
Those who have the financial where we're -- can get into the restaurant industry those who have.
A little last ten -- that are looking at the service segment.
And specifically France has -- are very active in the veteran community trying to get former military -- open -- -- service brand that would be more in line with.
Maybe so the background that they've -- throughout their military career.
That's fascinating.
I'll tell you every street corner wherever you -- seems to be new frozen yogurt shop popping up I mean I have to imagine that.
Section of the food industries over saturated.
You have the challenge with frozen yogurt is.
You don't really need to open -- a franchise to be in the business there's no point of differentiation among them also.
There are some like TCBY that is adding and mrs.
fields' cookies to some of their models.
And there's a brand -- -- Chicago called forever yogurt that is testing not coffee and -- you know.
I've talked him -- together as a way to expand its its bottom line so.
Those that are getting creative will probably have a place in the next few years -- that it's gonna.
It's gonna definitely decrease and the total number of content that exists within the category.
Mom and pop -- other kind of start -- -- the -- right now what's your advice.
Given great idea right now.
World's top again that the fear of the unknown what's going to happen with the fiscal cliff what's gonna happen with taxes what's gonna happen with health care.
Makes those are looking -- -- a little bit nervous.
But I would say we're still seeing most of the brands that we represent are seen significant growth over last year's because.
They're taking the right approach to growing their franchised rents no doubt getting some gonna -- new mr.
nick pals thanks so much for joining us.
-- thanks for having me -- get.
