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The primary reason you should consider franchising is it gives individuals the opportunity to go into business for themselves with an excellent chance of success at a minimum of risk. Starting a new business from scratch is inherently risky. Most studies conclude that over 90% fail within 3 to 5 years. In comparison, U.S. Dept of Commerce studies have shown that over 92% of franchised businesses are still operating after 5 years.

Other Benefits:

Established products or services: A franchisor offers a product or service that has been successfully developed, tested, refined and sold.

Marketing Assistance: This includes assistance in developing effective marketing plans for a local market. In addition the franchisor has resources and experience to develop regional and National marketing programs that benefit all franchise owners.

Start Up Assistance: Established franchisors have the experience and knowledge to help new franchise owners transition from a start-up to a profitable ongoing business.

Management Assistance: The franchisor is able to transfer a wealth of knowledge on how to successfully manage and operate a new business.

Brand Name Recognition: Established franchisors can offer National or regional brand name recognition.

Financial Assistance: Established franchisors can often offer assistance in financing a new franchise either directly or through arrangements with other lending institutions. Generally it is much easier to obtain financing for an established franchise than a start-up business. Much easier.

Proven System: An established franchise is able to transfer a proven and refined system of operations. This includes operating and management efficiencies developed by the franchisor. Uniform operational standards such as quality control benefit all franchise owners

 

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