Why are Franchises So Popular? | Starting your own business ...

The economic climate in America seems to be stabilizing.? If economic forecasts are correct, the American GDP can grow by 2.5% in 2012. Some economic forecasters also believe that America can finally manage to pull itself out of the recession in 2012.

So, where are the investment opportunities in a recovering market?? The stock market? many can still see it as too risky.? What regarding real estate? With the rate of foreclosures, the abundance of inventory and therefore the instability of prices, real estate is an unlikely chance. Where then is that the opportunity?

One promising space is franchise opportunities. Buying a franchise permits an entrepreneur to own possession and therefore the potential for vital income. several contemplate shopping for a franchise superior to other start up business.

Why is selecting a franchise business usually a far better choice than other start up businesses?

1. each business encompasses a learning curve. In most commence businesses the curve is steep as a result of the operating processes, marketing plan and branding have to be developed and implemented. With franchising the franchisor has already developed the processes, marketing, branding and has established a coaching program for the franchisee.? Additionally, before buying the franchise, the franchisee has an opportunity to learn all about the documented successes and failures of the franchise opportunity from the franchisor and from conversations with existing franchisees.

2. obtaining financing for a franchise business is easier than with other start up businesses. Lenders are hesitant to lend cash to a business that has no track record.? The franchise model offers the lenders a more responsible business model and a history that they?ll use within the evaluation process.

3. A franchise business receives ongoing support from the franchisor. The franchisor trains the franchisee and their staff and equips them with the tools which will aid in their success. New businesses must rely almost exclusively on the resources and knowledge of the new business owner.

4. Start-up businesses will struggle to seek out the proper vendors who can sell them the proper materials or product at the proper value.? A franchise provides a network of established vendors and is in a position to utilize an economies-of-scale in purchasing which might contribute to considerable savings for the franchisee.

5. a individual start-up business has no established brand value. New business owners have to invest heavily in marketing efforts to get the word out. there is not any guarantee that the promoting can attract the target customers and build the brand. With franchising, the complete is already established and therefore the target customers have already been identified.? In most cases, the marketing costs are shared by the franchisor and the franchisees.

6. According to a Price Waterhouse Coopers (PWC) report, the total number of franchise business establishments are expected to grow in 2011 to 784,802 units and employ 7.8 million Americans. In 2010, the corresponding figure was 765,723. Corresponding numbers for other small businesses are not available.

7. Prospective franchisees ought to grasp that they?re going to be needed to pay royalty fees to the franchisor. those who become franchisees have clearly determined that the advantages of branding, ongoing support, training, vendor development, economies-of-scale and other advantages, are worth the cost.

8. According to statistics published by the U.S. Department of Commerce and Trade Administration, a franchise business has a 90% chance of succeeding while a non-franchise start up business has a 15% chance of success.

9. Ongoing interest within the franchise business model is high. in step with one estimate, three hundred franchises are purchased each week within the U.S.

10. The franchisor maintains a vested interest in serving to its franchisees become successful as a result of the franchisor is obligated to report its successes and failures to the general public in its Franchise Disclosure Document (FDD). If the franchisees are successful and growing, so is the franchise.

11. A franchisee is also networked to other franchisees in the company.? Such networking is invaluable as a result of the franchisee learn about new trends, promoting approaches and best practices which will aid in success.

These are some of the many reasons why franchise businesses continue to be popular even in an uncertain economy.

Let us help you explore your choices. we?ve got access to over three hundred nice franchises across all industries. Some are surprisingly cheap. We also have access to many franchise lenders that will provide funding for qualified buyers.

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