Franchise Sales Pull Back During the Recession

According to an article from online.wsj.com, “Discouraged by economic conditions, some franchisers are cutting back on efforts to sell franchises.”

“Annual applications from franchisers who want to do business in Maryland are down significantly so far this year, says Dale Cantone, an assistant attorney general for the state. First-quarter franchise-registration applications in Maryland fell 16% from a year earlier to 367,” said the story. “Other states report similar falloffs. For instance, California’s filings from Jan. 1 through its April 20 deadline fell nearly 20% from a year earlier to 769. New York’s first-quarter registrations dropped 22% to 348 — the lowest number in five years. Attorneys who process state registrations confirm the pattern.”