Why Franchising?

The extraordinary success and growth of the franchise business model in the U.S. continues to create viable business opportunities for qualified individuals. There are currently over 532,000 franchise businesses in the U.S. alone. ( A new franchise opens somewhere in the U.S. every 8 minutes!) Franchise business sales currently account for 40% of all retail sales in the U.S., nearly $760 billion worth and growing! With a robust economy and prosperity growing, the outlook is very favorable for this trend to continue for many years. 

What do franchise owners think about Franchising on a whole? A recent Gallop poll of 994 franchise owners produced these results:

1. 94% considered Their franchises successful.
2. 75% said given the chance they would "do it all again."
3. Only 6% reported unhappiness with their franchisor.
4. The average pre-tax income was $124,290

The Benefits of investing in a franchise:

Minimize risk: Most experts will agree one of the primary reason you should consider franchising is it gives individuals the opportunity to go into business for themselves with an excellent chance of success at a minimum of risk. Starting a new business from scratch is inherently risky. The learning curve is steep and unforgiving. Most studies conclude that over 90% of new businesses fail within 5 years. In comparison, U.S. Dept of Commerce studies have shown that 92% of franchised businesses are still operating after 5 years.

Established products or services: An established franchisor offers a product or service that has been successfully developed, tested, refined and sold.

Brand name recognition: Established franchisors can often offer national or regional name recognition. This allows franchisees to attract new customers to their location that are familiar or already pre-sold on the products or services being offered.

Start up assistance: Established franchisors have the experience and knowledge to help new franchise owners transition from a start-up to a profitable ongoing business.

Management assistance: From accounting to personnel management, The franchisor is able to transfer a wealth of knowledge on how to successfully manage and operate a new business.

Marketing assistance: Established franchisors offer many marketing advantages. This includes developing effective marketing plans for a local market. In addition the franchisor has the resources and experience to develop a regional and national marketing programs that benefit all franchise owners. 

Financial assistance: Established franchisors can often offer assistance in financing a new franchise either directly or through arrangements with other lending institutions. Generally it is much easier to obtain financing for a franchise opportunity than a start-up business.

Purchasing power: With group purchasing it is often possible to obtain sometimes significant savings on goods supplies, and some services. Cost savings are a result of the power of group purchasing.

Proven and refined system: An established franchisor is able to transfer a proven and refined system of operations. This includes operating and management controls developed by the franchisor, and uniform operational standards such as quality control.

Best chance for success

In short, your chances of success with a proven franchise concept are much higher than if you attempted to start a business on your own.