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Is A Franchise Right For You?
When searching for a franchise, you can find them in almost any
industry, from computers to cars, from baby clothes to ice cream cones.
I am sure you have heard of the big ones, McDonalds, Subway etc...
There are an estimated 3,500 different franchisors (franchise business
companies) operating in the U.S. There are believed to be more than
750,000 franchise businesses in the U.S. The franchising industry and
businesses employs over 18 million people in the U.S. In 2004, it is
estimated that franchise businesses were responsible for over 1.5
trillion in economic output. The franchise industry accounts for 40% of
all retail sales in the US. A new franchise business opens every 8
minutes of every business day Approximately one out of every 12
businesses in the U.S. is a franchise business. Franchise fact: More
than 75 different industries use franchising as a means to distribute
goods and services. The average royalty fees paid by franchisees range
from 3% to 6% of monthly gross sales. Most franchise companies have
fewer than 100 units. The average length of a franchise contract is 10
years.
There, you now have most of the statistics about franchises, but what is
the real question?
Here it is: "Is a franchise right for you?"
A franchise is right for you if, you are looking for a way to be the
boss, or be in control of your life. It is right for you if you want
financial freedom and a way to generate the income that you need in
life.
Now that isn't to say that you can definitely make money with a
franchise, but the statistics show that more businesses are successful
as a franchise, than if you were to open an independent location doing
the same type of business. Why is this? Well when it all comes out,
simply put, when you buy a franchise, you buy a "System" or "Method of
doing business". Most of the time there is support and training as well
as a brand name to go along with the Franchise. When considering any
franchise, you want to ask the important questions.
1. How successful is your franchise? How many failures have you had and
why did they fail?
2. What is my Return on Investment and how long will it take?
3. What is the ramp up period for this franchise?
4. What type of support will I receive?
5. Do I get a protected territory?
6. Who is your biggest competitor and why are they able to compete with
you?
7. How fast can I expect to be open?
8. What is the number 1 obstacle to opening this type of franchise?
Those questions and more should be asked, that is just the tip of the
iceberg when it comes to the number of question you should ask. If you are successful, you will
see a return on your investment and you will have the freedom that you
want. Freedom is worth a lot. Also, the cost of the franchise is not the
most important question, yet most people focus on that question and
forget the other important ones like the ones listed above.
You get what you pay for, so make sure to research the
franchise you are interested in before committing to anything on paper.
If you are interested in speaking with us, you can reach us here:
info@openafranchise.com or you can visit our site:
http://www.OpenAFranchise.com
This article may be reproduced only in its entirety; you may not make
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Our Company is a Product Brokerage and Internet
Marketing Company specializing in One-To-One Marketing
and Mass Customization.
We use advanced technology that allows
customers to design products that fit their personal
needs. Independent distributors around the world sell
these products through our Business System.
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