- Risk Minimization – while not a guarantee of success you are buying into a business with an already-established system in place that you will follow.
- Brand Awareness – many franchises are already recognized and newer, emerging brands often have the look and image of a larger system.
- Training and Support – most concepts offer a 1-4 week training program, launch support, ongoing support, and training and coaching.
- Marketing Materials and Support – readily available marketing materials,marketing plan and vendors.
- Established Vendors and Supply System – most franchisors have a vendor network set up for products and services often with group purchase power.
- Easier to Obtain Financing – lenders like proven track records of franchisors. Most franchisors have third-party financing available to qualified candidates.
Quick Franchise Facts and Statistics:
Franchising as a whole is much larger than most thing:
- There are an estimated 3,000 different franchisers (franchise business companies) currently operating in the U.S. today.
- It is estimated that there are nearly 800,000 franchise businesses in the U.S. which provide greater than 8 million jobs.
- Approximately one out of every 10 businesses in the U.S. is a franchise business and franchises are represented in nearly 300 industries.
- The average initial franchise investment for more than 50% of franchises is about $250,000 - excluding real estate.
- The average royalty fees paid by franchisees range from 3% to 6% of monthly gross sales.
- Most franchise companies have fewer than 100 units - fewer than 20%.
- The average length of a franchise contract is 10 years.
