Not all entrepreneurs have the courage and time feed a business from scratch. They prefer to buy a franchise of an established business. There is nothing wrong with that, in fact, it may be the best move to take if you are a new entrepreneur. You might own a single franchise with a partner, or driving in a corporate business environment. Some examples of successful businesses started for the franchise are 7-Eleven, McDonalds, Holiday Inn, Starbucks, and many others.
franchises employ more than 9 million people in the US alone. An estimated 40% of consumers’ money is spent on goods or services produced franchise. For nearly a trillion dollars in domestic sales each year. One in every 12 companies in America are open franchises. It is a new franchise company opened every six and a half minutes during business hours. Over 80 percent of these new franchise businesses are restaurants, followed by retail stores, hotels, motels, auto parts store and repair center.
The US franchisors have spread their wings abroad too. The Golden Arches are now celebrated in 117 countries worldwide, with over 25,000 restaurants. They accumulating customers looking for fast food and they compete with local brands without a hitch. Because of this huge success by McDonalds, the company Interbrand Group marked the stars and stripes as the biggest brand in the world today. McDonalds is not finished with the conquest of the world for now. Over the next four years, they are on a marathon to open more Golden Arches outside the US
What are the advantages of owning a franchise?
1. Access to professional help and well-established corporate culture. A new contractor does not have to go alone. He or she has years of research and development rest on should he or she has encountered some problems in the company along the way. Business advice is just a phone call to guide you on how to solve the marketing, operational and management problems that may arise. You are in direct competition with fellow franchisee ever. In fact, your regular convention is your source of new ideas and lessons to apply in your locality.
2. Your name is on the business owner plate. While buying the brand from someone, your franchise money allows you to own the business 100% in your region. Your employees are following you as their boss. Although certain regulations and business strategies still apply, you have always the company.
3. Your company is recognized from the get go. On a national scale known brands are difficult to sell. What’s more, if your brand is known worldwide. You do not have to spend time and money on branding. It’s a done for you!
4. Easy to get help and financial advice. No franchisors want to learn that one of the stores named after them closed due to bankruptcy. If they learn that one of their franchisee is in financial difficulty, their financial advisors, analysts and accountants are on the next flight going to the local franchise area. Franchisors are even willing to lend money themselves to help raise a branch of the franchise in trouble over the water. SRA International Inc. is well known to give their franchisees $ 20,000 to $ 35,000 to pay initiation fees to income over a period of two years or more.
If other bend down to economic pressures, franchise companies are well known to stand in the middle of chaos. In fact, franchise businesses success rate 66 percent compared to individual firms said the International Franchise Association based in Washington DC. But because of the high success rate of franchised businesses, many fly-by- night franchises emerge every day – entrepreneurs should be wary of the brand, they are the franchise.
The rate of phenomenal success of franchised businesses is no accident. This fact is based on a healthy economy and business principles that have been proven for years, since the first franchised brand appeared. franchise businesses provide the most competitive products and services and advanced in the world, and of course, they are here to stay.