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Franchising Continues To be a Safe Way to Go in Troubled Economy

Written by: Michael Hemenway

Article Overview: There are various areas where franchising scores over stand-alone businesses. First is that there’s a system to follow and that makes getting loans easy for the new players in this field. What’s more, the support system of the franchisor ensures that the person who is starting a franchise doesn’t have to face any problem while running the business alone.

Franchising Continues To be a Safe Way to Go in Troubled Economy

In times of economic upheavals, franchising has always emerged as a safety net. Now with a slow economy taking hold of the United States, there’s a great surge of people towards the franchise world. These days, you will likely come across someone who is starting a franchise or at least thinking of buying a franchise. America has always been the land of entrepreneurs; so, why these people who once loved to start a business on their own are following the footsteps of others nowadays? There are various reasons behind that. The first and foremost is that the demography and characteristics of the people coming into the business have changed. Today people in their ‘50s are starting a franchise after spending several years in their profession. They don’t want to undergo the hassles of starting a stand-alone business by inventing the system and so, prefer to follow a proven one.

Similarly, there are many youngsters who are ready to buy a franchise rather than look for a job. For them, having an entrepreneurial bend of mind is not enough; they also need solid business plan for the future. Franchising provides them with both. It allows them to become a franchise-owner and independent to a certain degree while the proven business model of the company helps them to secure their future. They don’t have to make mistakes and learn from them, as they had to do, if they went for stand-alone business. Moreover, it’s quite difficult for a young entrepreneur starting a stand-alone business to convince banks about the feasibility of his project. Starting a franchise of top franchises makes sure that they get loans from banks and other lending institutes easily.

In a stand-alone business, the would–be owner is supposed to undergo various trials and tribulations. He needs to get the license for the business, oversee the designing of the interior of his shop, and pick a logo, secure trademark and so on. But when they buy a franchise, half of these are done by the franchisor or guided by them. The person just needs to devote some amount of time in learning how to franchise and expand his client base. Even advertising and marketing are shared jobs. So, it becomes quite easy and less time-consuming to buy a franchise rather than starting a stand-alone business from the scratch. It is particularly beneficial for women entrepreneurs who are capable of doing jobs, but prefer to be homemakers. By starting a franchise, especially a home-based one, they get to fulfill their potential, but also find time for their family, as the franchisor helps her at every step. These are the main reasons why starting a franchise has become the buzzword in today’s business world.

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Article Tags: 50s, business model, business plan, buying a franchise, demography, economic upheavals, feasibility, footsteps, franchise america, franchise owner, franchise world, franchisor, hassles, look for a job, profession, safety net, slow economy, top franchises, young entrepreneur, youngsters



Related Forum Posts
Re: Moderators on vacation - Safe travels GT!
Re: Re Franchise etc - [quote="bmueller47":e0j0nu4t]Can you see a shift of various types of franchises? What I am thinking about is that today it is more difficult to create franchises, that has great appeal. More and more people want to have their business, but no interference of someone else.[/quote:e0j0nu4t] Not sure what you mean exactly but it is certain that more and more people want to have their own business but not more and more people know what they really want to do, or how to do it. And that's what franchising is all about. Franchising is not for an entrepreneur. An entrepreneur will do his own thing. People who buy franchises want a turn key business, with a proven model. Franchising in the US had never been that good. I don't have the exact numbers in mind but I know for sure that franchising is growing more and more as people are getting more and more aware of this business model.
Franchising vs. Licensing? - What is your opinion on Franchising vs. Licensing? Which is better?
Nominations for a new Franchising Moderator! - Is there anyone you'd like to nominate as our Franchising Moderator (or volunteers for the position)?
Great Article, chock full of info. - Ian, Thank you for linking your article regarding Licensing vs Franchising. Its a good read.


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