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During this economic recession, the dream of leaving uncertain corporate America to seek personal business opportunities has never been more attractive and welcoming. Realizing that in business as in life there are no guarantees, but are always smart ways to invest. Seeking a future in a franchise provides a measure of security that might often be missing from independent new ventures. Purchasing a franchise allows the new owner to use the success of an existing business to sell a proven product or service. It means having the opportunity to run a business based on a successful business model, joining the ranks of independent company owners who control their own destiny.
Some of the most important advantages of franchising include:
An established brand
Franchises often sell products with regional or national recognition. Customers are aware of the product or service, trust it, and will choose a brand name 2 to 1 over a generic counterpart. An established brand increases revenue by bringing in customers and decreases the amount of time and money needed to spend on marketing.
A proven business model
90% of franchised businesses are still operating after 10 years while 82% of independent businesses fail. Why? Because their business models work. Over time, Franchisers have encountered and overcome most of the problems a new owner will face. The benefits from that experience provide solid guidelines that avoid countless costly trials and errors associated with starting and maintaining a new business.
Proven ongoing support
New owners are not alone as they start their business or as they venture along. The franchisor presents detailed upfront training on how to operate the business which is a major factor in their likelihood of success. Continuing support in the areas of advertising, marketing, employee relations and human resources, bookkeeping and ongoing assistance are all designed to strengthen business success for both the franchisee and the franchisor.
Members in a franchise organization can be confident that they are not alone. As new owners come across any issues or questions, they have not only have support from the franchisor but from other franchisees who sustain each other on a continuous basis. It is often quite advantageous to have a group of other business operators to exchange information and ideas with.
Franchise Revenue
Franchising is a profitable and strong business system in today's world and has withstood the impact of the ebb and flow of economic cycles. Franchises represent about only a tenth of the total number of the businesses, yet hold nearly 40% of the market sales. This year, even with the economic downtown, franchise businesses are expected to grow 2%. Franchises continue to outpace the economy as a whole in terms of the rate of growth of jobs, payroll and output.
• There are approximately 770,000 franchise units currently in the United States.
• Price Waterhouse predicts there will about 22,000 new franchise units sold in the US in 2010.
• Franchised businesses provide more than 11 million jobs, or 8.1% of the national private-sector workforce.
Franchising offers freedom and independence within a framework of systems designed to achieve maximum success.
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