Why Franchising?
A respected financials magazine recently cited US franchise businesses as being the 7th largest industry in the world.
One of the most challenging aspects of starting a business is creating a viable business model or system that consistently yields profits. Coming up with such a system is extremely challenging. Most individuals will fail several times before creating a successful business model.
Because of this, many aspiring business owners choose to invest in a franchise because they offer proven systems that create profitable businesses. Why reinvent the wheel? As a franchisee, you have a support system that will help you with every aspect of running a successful business. You are in business for yourself, but not by yourself.
Below are some quick facts about franchising and why such an option is so favored by aspiring business owners:
- Franchise businesses account for nearly 50% of all retail sales in the U.S., yet only 1 out of every 12 businesses is a franchised business.
- Total sales by franchised businesses are projected to reach $2 trillion this year.
- A new franchised business is opened every 8 minutes of every business day.
- More than 75 industries use franchising to distribute goods and services to consumers.
- Franchise businesses employ more than 14 million Americans.
There are an estimated 4,000 franchise companies operating in the U.S. doing business through close to 500,000 retail outlets. In 2000, the median gross annual income, before taxes, of franchisees was between $75,000 and $124,000, with over 30% of franchisees earning over $150,000 per year. According to the U.S. Small Business Administration, of all the business loans that default in a given year, the least defaulting loans are franchises (less than 2%).
Franchising works because it offers a proven system, continuous support, and a team of enthusiastic participants for business growth