Some franchises still resist the economy
Following the post I wrote a couple of days ago about how the franchising industry is also being hurt by the economy, I cam across a Press Release today that shows that not all franchises are getting beaten up… This Press Release is about Rent-A-Wreck, a car rental franchise company.
Bob Barton, the Company’s Chief Operating Officer stated, “We are quite pleased with the continued expansion of the Rent-A-Wreck system in Canada and welcome these new franchisees to our network.”
As it relates to the current economic conditions and its effect on the Company, Mr. Barton also made the following statement, “In light of the current unfavorable capital market conditions, we wish to inform our shareholders of our continued success in selling franchises during this difficult economic period. The Company currently has several candidates under consideration for U-Save franchises in the United States, and has been advised by the U-Save master franchisee in Ontario of several candidates also considering U-Save franchises in that province. We wish to remind the investment community that with the exception of a working capital facility which has already been successfully renewed through December 2009, the Company has no other external third-party debt. While the credit markets continue to place significant strain on the economic conditions throughout North America, the Company, as a franchisor, does not require any fleet financing and is not subject to the constraints currently being experienced in the capital markets. Our franchisees continue to finance their own fleets, and we have already been advised by many of our franchisees of 2009 fleet orders made with automobile manufacturers. The Company continues to provide competitive insurance products to its franchisees for fleet operations.
That gives us some hope that not all the franchising industry is going down. If you know about franchise businesses that are doing good despite of the rough economy, please let us know in the comments.
Filed under: Franchise Talk
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