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Why the Franchise Industry Continues to Thrive

Written by: Michael Hemenway

Article Overview: The Franchise business is thriving at present and will continue to boom in future. This area of business helps newcomers to gain from the experience of seasoned players. Furthermore, the field has higher rate of success and there’s enough franchise opportunities to please anyone looking forward to buy a franchise.

Why the Franchise Industry Continues to Thrive

With an economic recession gripping the United States, it’s quite natural to wonder about the feasibility of your plan of starting a franchise business. So, if you are in such a position, then the following points can help you to understand why franchising is a good choice of investment, even during a slow economic condition. May be that will clear the air regarding your decision of buying a franchise.

• The franchise industry welcomes both novices and experienced people in the business by pairing them with franchisors who are expert in their respective fields and are eager to transfer their knowledge. So, unlike a stand-alone businessman, a franchisee, even if he is new in this field, doesn’t have to suffer much in this arena.

• The prime thing about franchise business is that there’s always a business model for the franchisees to follow when they are starting a franchise. On the other hand, if they had gone for their own business, it could have taken years to come up with a viable business model.

• The fact that franchising has more than 90% success rate, makes the industry quite sought-after field among people looking forward to start a franchise.

• Since failure rate of franchise businesses is very low, people get loans easily when they submit a plan to finance a franchise. On the other hand, a novice with a business plan to start-up a stand-alone business will need great charisma to make the bankers trust him.

• The sheer number of franchise opportunities also makes the industry quite an attractive field among people who have become bored of corporate America. They can inevitably find a franchise business for sale offer that matches their dream and fits their pocket.

• The consumers have become more brand-conscious than before even for maid services, handyman services or pet care. Franchisors join the industry after establishing themselves among their customers. That, in turn, makes their franchise business for sale offers quite lucrative opportunities among people who want to start a business.

• There are various lenders like the SBA-backed lenders particularly for the small business franchise industry. Many franchisors themselves are pre-approved for SBA loans, which, in turn, make it easy for the prospective franchisees to get funding for their project.

• Many franchises are home-based business opportunities, which attract talented homemakers who cannot work outside the home for some reason or other.

• Moreover, there are franchise opportunities that are part-time, which enables people, who buy a franchise of such kind, continue their other job as well. Even absentee franchisees are being allowed now by many franchisors.

• The franchisee is guided by the franchisor at every step. From providing initial training to offering on-going support in every department – the franchisor is always there with the franchisee. The franchisees can call up the franchisor in time of requirement. What’ more, since the franchisor has learned form his mistake and perfected the system, it can solve most of the franchisees’ problem from its own experience. But, in a stand-alone business, the new player has to learn everything from the scratch.

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Article Tags: business for sale, buying a franchise, charisma, corporate america, economic condition, economic recession, failure rate, franchise business, franchise businesses, franchise industry, franchise opportunities, franchisee, franchisees, handyman services, lucrative opportunities, maid services, pet care, sheer number, success rate, viable business model



Related Forum Posts
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: Info for would be franchisers... - [quote="Sebastien":2gam0klq][quote="BuzzAroundBooks":2gam0klq]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to.[/quote:2gam0klq][/quote:2gam0klq] That is really what I look for in any industry publication. We lead busy lives and when people fill their magazines with fluff, not only does it benefit no one, but it makes us truly appreciate those that don't. Thanks!


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