|
What Exactly is Franchising?
Is it just burgers and fries?
Most people associate the word “franchise” with fast food restaurants. However, there are many more types of franchise businesses that you may not have considered, including consulting, residential and commercial cleaning, hair care, printing services, senior care, disaster restoration, and many more.
Franchises are everywhere and research clearly indicates that franchising will continue it's massive growth. In fact, financial experts have indicated that franchising is the “wave of the future”. In the next 10 years, franchising could comprise over 50% of the retail economy and employ millions of people. This growth should be anticipated based on the simple logic of the underlying concept. Franchising offers success, with the least amount of risk, to aspiring business owners. Franchises will enable hundreds of thousands of new business owners realize the dream of successful business ownership and financial independence.
What is stopping you? Are you like many other people and simply don’t know where to start? Are you asking yourself the following questions?
• I want to start a business, but I don’t know what kind?
• There are over 3000 franchises available, which is the right one for me?
• I don’t have any experience in running my own business; can I get the training?
• Can I get support after I get my business started?
• How much investment will I need?
• Can I finance any of my investment?
• Do I need to operate the business or can I hire someone to run it for me?
• Can I open more that one unit?
The questions are endless, and that is where The Franchising Authority can help you. We help you answer these and many more questions. Our role is to help you analyze your lifestyle, financial and business requirements, and then help you focus in on a few opportunities that best fit them. Then, we will help you present your qualifications to the franchises in which you have an interest. With our vast knowledge of franchising, we will help you choose the franchise the best for you and your family.
The Franchising Authority does not charge you for our services. There is absolutely no obligation that you buy a franchise that we present to you. After going through the evaluation and qualification process together, we will present you as a qualified prospective buyer to the franchises that you have chosen. If you purchase one of these franchises, the franchisor will pay us for finding a qualified buyer. The Federal Trade Commission law dictates that the franchisor must charge you the same whether you go through us or directly to them.
There are other reasons you should utilize the services of The Franchising Authority can help you instead of going direct to the franchisor.
• The Franchising Authority consultant will educate you in the intricacies of franchising.
• The franchisor will tell you the advantages of their franchise, but The Franchising Authority consultant can help you identify any disadvantages that should be considered.
• The franchisor will tell you how great their franchise is, but The Franchising Authority consultant will help you identify the franchisors competitors that may be even better.
Why Buy a Franchise?
There are many reasons to start a business through franchising rather than an individual start-up.
- Name recognition
- Ability to expand easily
- Greater buying power due to mass purchasing
- Start-up training
- Ongoing support of franchise company
- Low start-up costs
- Higher potential for asset appreciation
Statistics support these notions:
- It is estimated that up to 6000 franchise companies operate in the U.S.
- 75 industries use franchising to distribute goods and services to consumers.
- Nearly 50% of all retail sales come through franchising.
- One in twelve businesses are a franchise.
- Average initial investment level for nearly 8 out of 10 franchises, excluding real estate, is less than $250,000.
- Nearly 86% of all franchises opened in 60 industries during the past 5 years are still under the same ownership.
- Over 300 franchises are sold every week. Or… every 8 minutes of a typical week a new franchised business is started.
- 750,000 franchised businesses in the U.S. generate almost $1 trillion each year.
- In 2000, the median gross annual income, before taxes, of franchisees was in the $75,000 to $124,000 range, with over 30% of franchisees earning over $150,000 per year.
But nothing speaks louder than the U.S. Department of Commerce
Seven Year study of Franchise vs. Independent Start-Up Success Rate:
According to the U.S. Department of Commerce, franchise businesses are exponentially more likely to succeed than individual new start-ups, particularly if you look at the figures over a five or seven year period. According to Department of Commerce figures, after seven years 91% of new franchises are still in business, as compared to only 20% of individual new start-up businesses.
|