- 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:
There are many reasons why a franchise business makes sense.
- There are an estimated 3,800 different franchisers (franchise business companies) operating in the U.S. today.
- It is estimated that there are nearly 800,000 franchise businesses across 300 business categories in the U.S. which provide nearly 10 million jobs and generate nearly $1 trillion to the economy.
- According to the IFA (International Franchise Association) almost 4% of all small businesses in the USA are franchises.
- There are more than 300 different industries and business categories that use the franchising business model as a means to distribute goods and services.
- A new franchise business opens every 8 minutes of every business day.
- Approximately one out of every 12 businesses in the U.S. is a franchise business.
- The average initial franchise investment is $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.
