Franchise Talk

What Kinds Of Opportunities Does Franchising Offer? – Part 1

March 10th, 2009 | Author: Jack

Independence
There’s a good reason the United States is called the Land of Opportunity. The sprit of independence is one of the cornerstones in the nation’s founding. That spirit persists today in the world of business, where independent-minded entrepreneurs take the risks and reap the rewards of running their own business.

There’s something inspiring in the idea of doing it yourself, of making it on your own. And nowhere is this spirit of independence and potential reward more clearly available than in the world of franchising.

For decades now, franchising has offered individuals a chance at the American Dream. Whether in response to a dead-end corporate job, fear of being laid off or downsized, or simply in response to the entrepreneurial pull that burns in so many of us, generations of Americans have turned to franchising for the independence and financial fulfillment it provides. And, when carefully considered and diligently executed, franchising can indeed offer that independence — and a whole lot more.

Did you know that franchise businesses generate $2.3 trillion in sales in the U.S. each year? Or that 41 cents of every retail dollar is spent at a franchise operation? (Especially impressive when you consider that fewer than five percent of all small businesses are franchised.) Or that there are more than 2,900 franchise concepts in the U.S., spanning 75 industries? That a new franchise opens every 8 minutes of each business day? These numbers show there is little need to go out on your own and create a business from scratch — a very risky move considering the failure rates of start-up businesses. Instead, through franchising, you can become an independent business person.

“Franchising is the champion of small business expansion worldwide,” says Steve Olson, publisher of Franchise Update Media Group. “Studies have shown that franchised businesses enjoy a success rate up to three times greater than independent businesses, because franchising provides greater business advantages, such as training and support, group purchasing power, advertising clout, and brand strength.”

As a franchisee, you purchase the rights to use a brand or name in a given location or area. Your job is to open and operate that franchise unit to the best of your ability. Yes, there are corporate rules and requirements, and standards you must adhere to, but you are in control of your franchised unit: you hire, you fire, you train, you manage, and you reap the rewards. The money you earn (minus a small royalty stream paid to the franchisor) is yours to keep, spend, or invest back into your franchise or buy additional units. Full article.

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