Franchising: Small Business Opportunity

Franchising Introduction

So you're interested in opening a franchise of your favorite business and you are looking for some answers? Below are some definitions to get your franchising feet wet.

The Basics

 What is 'franchising'?

     The concept of franchising started naturally as one business owner saw an opportunity to expand his own successful business beyond his geographical region by lending his business model and trademarks to another qualified entrepreneur. This allowed the franchisee to adopt the name and original reputation for quality, value and service while offering a great product to a larger number of people.

What are the benefits if I become a franchisee?

  There are many benefits of opening a franchise. The most popular reasons to adopt a franchise business model are the use of their reputation, national branding campaigns and access to a support system as well as reduced investment risks.

  In exchange for start up and royalty fees, a franchiser offers a complete business model, commitment to building the brand, education and training, operational support and leveraged buying power.

•  The U.S. Dept of Commerce states that 90% of franchises are still in operation after 10 years, compared to just 18% for other forms of small businesses.
• A recent Gallup Poll of franchisees found that more than 94% considered themselves successful, and that more than 75% would buy their franchise again if they had to do it over.

For more information on franchising contact the U.S Small Business Association, a government run agency, which exists "to to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation." Click Here to visit the SBA website for more information on franchising.