The Benefits of a franchise
Not many people have the ability or expertise to be efficient at all aspects of running a good business. That is where a franchisor's experience can come into play. Franchises offer a system for launching, operating, and growing a business. As a franchisee, you will have access to an entire framework around which a business is built. Franchisors have operational systems, manuals, and training for their franchisees that cover the entire operation. Support is provided in terms of marketing, operations, accounting, and technology. These efficient systems are designed to enable franchise owners to earn more and spend less time.
Franchise organizations allows the franchisee to grow under a common brand and share in the benefits of a larger group of business owners. Although franchises are independently owned and managed, all franchises share in the collaborative franchise benefits.
- Full training system is in place for franchisees
- Group advertising and marketing
- Recognized and proven trademarks and proprietary properties, patents, and/or designs
- Operational support from franchisor, both before and after business launch
- Scaling for rapid growth
- Increased buying power for goods and services due to higher volume with suppliers.
Franchising offers a better chance to succeed
The U.S. Department of Commerce and other authors of statistics concerning franchising have shown that the revenue from franchise establishments accounts for over one-third of all U.S. retail sales.
According to studies on the economic impact of franchises, franchise businesses produce over 3 percent of nonfarm private output in the United States, and when the total contribution of franchise businesses was considered (which includes the goods and services used or purchased by franchise businesses and their employees), franchise businesses account for approximately 9 percent of nonfarm private output in the United States.
Government research over the years has indicated that the success rate for franchise-owned endeavors is significantly better than the rate for non-franchise-owned small businesses. In short, the good news is that franchising makes up a significant part of the national economy and presents a statistically better chance for success than other business options.