Home Features Mastermind Videos About Advertise Blog Network Contact
   

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

Featured Ebook


ebook Famous Entrepreneurs - Modern Empire Builders


Featured Ebook

More Evan Carmichael
Have A Suggestion?

Sales Lessons From Starbucks And Dell

WHY IS THE SUCCESS OF FRANCHISING SO AMAZING



WHY IS THE SUCCESS OF FRANCHISING SO AMAZING
   

WHY IS THE SUCCESS OF FRANCHISING SO AMAZING? Series 3 By Ken Hollowell Anyone that seriously looks at the growth rate of franchising as a method of marketing will agree that the growth has been phenomenal to say the least. Going back over 150 years ago when Singer Manufacturing began offering distribution licenses to individual in the promotion, sales, training and repairs of their sewing machines, who would have thought franchising would be what it is today? Over 2,500 businesses have expanded regionally, nationally or worldwide in the offer of their system of doing business.

Based on the present growth of franchising, by the year 2010, franchising will exceed $2 trillion. After the Federal Trade Commission in 1979 enacted Rule 436 which requires a franchisor to provide full disclosure to a potential buyer of a franchise, the FTC wanted to monitor the growth of franchising. Extensive studies were done and one amazing fact that was unexpected was revealed. The failure rate was only 3.7% in franchise businesses. The question was asked why so low?

The answer is very simple. Franchisors spend a great deal of time improving their system of doing business and documenting every aspect of the business so that franchisees benefit. Franchisors build their “Marks” so that the general public becomes knowledgeable concerning the products and services of the business. Most importantly, the Franchisor screens and qualifies every individual who makes an inquiry into the franchise business. A Franchisor has a profile of who they want as a franchisee. Not everyone can qualify or fit the profile. These individuals are not awarded the franchise.

Once a franchisee is selected an intense training program is provided that offers both classroom and hands on training. Every aspect of the business is presented in detail from pre-opening assignments, inventory control, accounting, advertising, marketing, hiring, daily procedures, purchasing equipment and supplies and much more.

To enforce the training, the Franchisor loans a copy of the operations manual to the franchisee. This manuals contains everything relating to the business from ad layouts to forms, specifications for equipment, and step by step procedures in the operations of the daily business. The Franchisor’s operation manual can be several hundred pages to well over five hundred pages. Some Franchisors provide pre-opening manuals, marketing manuals, and employee manuals.

In addition, to the training program and operations manual a franchisor will even be present for 2 to 5 days when the franchisees business is ready to open its doors for business. This support gives the franchisee a comfort zone for his business.

After the business has operating for several months, the Franchisor will visit the franchise operation to ensure that procedures are being followed and the business is maintaining the image that the Franchisor wants projected.



WHY IS THE SUCCESS OF FRANCHISING SO AMAZING - To learn more about this author, visit Ken Hollowell's Website.

Like this article? Share it with your friends
[Get Copyright Permissions] E-Mail | Print | More  


Related Articles Related Articles
I Want to Take My Business to the Next Level
  If you are currently a business owner and thinking about taking the next step, franchising your business; you may want to take a close look at franchising. Franchising can make businesses very successful. Many bus...
WHY IS THE SUCCESS OF FRANCHISING SO AMAZING
  There is no doubt that franchising has seen an amazing growth over the past 50 years. Franchising will hit $2 trillion by the year 2010.
What is franchising? My personal definition!
  Working in the franchising community for 25 years, I have come to define the concept of franchising, based on my personal experience.
Franchising Overview
  An important step in the small business startup process is deciding whether or not to go into business at all. Each year, thousands of potential entrepreneurs are faced with this difficult decision; because of the r...
Franchising Is a Better Path to Success than Opening a StandAlone Business
  The market seems ripe for franchises to continue to grow. Here's why it's a good business move right now.

Related Forum Posts Related Forum Posts
Attracting Success Attracting Success
Business Expert Advice, Tips, Tools and Training Business Expert Advice, Tips, Tools and Training

 
About the Author


Ken Hollowell
(Visit Ken's Website)
– Ken M. Hollowell, President and Founder of National Franchise Services, Inc. from 1980 to present is known for his creative and positive leadership in the field of franchising. Mr. Hollowell has lectured before many business organizations, Universities and Colleges on the subject of franchising. He conducts numerous seminars annually on franchise development and investing in a franchise business throughout the United States. He is regularly requested by the Small Business Administration in Washington, D.C., S.C.O.R.E., Learning Annex and the International Franchise Association to speak on franchising. For several years, Mr. Hollowell hosted a radio talk show and has appeared on television program to promote franchising. His well-rounded experience and practical knowledge in both development and marketing have led him to be one of the most sought after franchise consultants in America. Mr. Hollowell has written many articles on both developing a franchise network and buying a franchise.
Have A Suggestion?

View Author's Blog
Become An Author

View Author's Video
Become An Author

Free Downloads


Ken Hollowell's

Complete
List Of
Franchises
Articles

First Name
Last Name
Email
 
If you enjoyed this article, get Ken Hollowell's Complete List of Franchises Articles For FREE!
Become An Author