Franchising is an excellent way to become your own boss without having to go through the painful startup process. You essentially walk into a ready-made business and then make it your own, taking the profits with you.
With that said, the majority of business-minded people don’t know much about it. Franchising seems like the second-best compared to the glory of an IPO.
However, that’s not always true. Many people discover they are more comfortable running a franchise than a regular business. Here are some facts that you can use to make up your mind about whether it’s the right track for you.
Nearly 10 Percent of All Businesses are Franchises
Franchises seem like a niche business opportunity – until you familiarize yourself with the statistics. Then you discover it is more popular than you thought.
Around 10 percent of U.S. businesses are franchises with thousands of new opportunities becoming available every year. Franchise Direct provides several examples of the types of companies you can join, including fitness outfits, restaurants, and retailers.
New Franchises Open Every 8 Minutes
The franchise segment of the economy is also highly active. According to data, budding business leaders open a new outlet or unit every eight minutes.
This rate of expansion is a testament to the success of franchises. Customers love them because they are part of existing, popular brands. And entrepreneurs like them too because they get a significant amount of help along the way.
Franchises Generate More Than $2.3 Trillion In Sales
The amount of money these outlets generate is also enormous. Franchises generate around $2.3 trillion in sales every year, which is about the same size as the entire economy of Spain.
What’s more, budding leaders can set up in an industry of their choice and do something they really love, with a business plan already mapped out for them.
Benjamin Franklin Started the Franchise Movement
Aside from being a founding father of the U.S., Benjamin Franklin was also active in many other areas of life, opening one of the nation’s first franchises in 1731.
The business was a printing company (the equivalent of a tech firm today) based in the city of Charleston in South Carolina.
Franchises are one of The Nation’s Biggest Employers, Employing Over 18 million People
Franchises also provide jobs for millions of people across the country. Many franchises are in labor-intensive industries, requiring thousands of people to deliver products and services to consumers.
Therefore, if you start a franchise, you’ll need to learn about payroll, HR, and management. Usually, franchise businesses are people-focused, both internally and externally.
There Are More Than 750,000 Individual Franchise Units in The U.S.
The likelihood of succeeding as a startup beyond 10 years is remote. Nine out of ten entrepreneurs don’t make it. However, the likelihood of making it as a franchise owner is considerably higher.
Today, there are more than 750,000 operational units in the U.S., most of which make profits consistently. They also operate across numerous industries, seeking opportunities in new sectors.
Conclusion
Franchising is a great way to grow your business, capitalize on established brand recognition, and gain access to resources without losing total control of the business. With the right franchise ownership structure in place, you can minimize risk while building relationships with customers and partners that will help grow your business even further.
The key to being successful in franchising is understanding how it works and doing the necessary research to find a suitable opportunity. Knowing the basics – fees, royalties, agreements etc – will go a long way in determining success as well as getting help from experienced professionals such as lawyers and accountants if needed.
Hopefully this pointers shared in this blog will shed some light on what franchising entails and all the stunning facts associated with it! With the right preparation and guidance, you can become an effective franchisee soon enough!
