The advantages of buying a franchise
Franchising is a common method of going into business in which a Franchisee pays a service and other fees for the rights to use the trademarks, business systems, products, recipes, etc. of an established business, known as the Franchisor.
Buying a franchise offers the franchisee the same benefits as starting their own business, like flexible hours and greater potential income. But the process can offer the franchisee some advantages over starting their own business “from scratch.” Such as:
- Proven products and business systems
- Established brand name and reputation
- Combined buying power of the Franchise Network
- Training, pre-opening and ongoing
- Marketing and advertising campaigns and support
- Architectural design specifications
- Help with locating the right site, and restaurant construction
- Assistance with lease negotiation
- Ongoing support from the Franchisor for the life of your franchise
Financing your Franchise
There are various options for financing the purchase of a franchise opportunity, depending on the franchise. The most common are Paying Cash, Small Business Administation (SBA) loan, traditional bank loan, or borrowing from friends/family. Some franchisors offer in-house financing, or work with certain lenders they can refer franchisee candidates to.
Compelling Facts for Franchising
- There are over 800,000 franchised business establishments
in nearly 100 industries in the United States.
- The success rate for franchise businesses is 85%,
compared to just 49.3% for typical small businesses.
- Over 17 million Americans are currently employed by franchised businesses.
- The minority ownership rate among franchised businesses is 20.5%.
This rate is 14.2% for non-franchised small businesses.
- Veteran-owned franchises account for 13.4% of all franchised businesses.