Larry Lane            VR McKinney, TX

U.S. FRANCHISING FACTS

· It is estimated that franchising creates 18 million jobs & generates $2.1 trillion to the economy

· Approximately 1 out of 12 businesses in the US are franchises

· The franchising industry accounts for approximately 40% of retail sales

· A new franchise business opens every 8 minutes of every business day

· Most franchise companies have fewer than 100 units

· A study by the US Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of them were still open for business.

All of the above makes a pretty good case for considering a franchise when looking to purchase your own business. However, beyond the glowing statistics of how franchising is a dominant part of our economy, one should consider the specific reasons to purchase a franchise versus an independent business. Whether looking to open a new business, or purchase an existing business, here are 8 solid reasons to consider a franchise during the process.

Proven Business Model – A proven franchise model, while never a guarantee, greatly reduces the risk involved in business ownership. A “tried and true” operating system is much easier to execute than a “one off’ model, and a quality franchisor will ensure that the business model changes with the times as needed.

Brand Image & Presentation – an independent business person can always buy these services through a 3^rd party, but the expertise usually comes with a high price tag.

Store Design and Construction Model – most franchisors have the model developed to the point of knowing the size of space needed, color and décor schemes, estimated finish out costs and are prepared to assist you throughout the entire process. This will greatly reduce your time for starting a new business. If you are purchasing an existing franchise location, then you are able to compare to the model that is currently being utilized.

Industry Training – It may be very beneficial for a prospective business owner to stay in an industry in which one has experience, but one of the great benefits of franchising is that often direct industry experience is not necessary in order to be successful due to the training provided by the franchisor.

Ongoing support and industry education – there are many aspects to being successful in business, one of which is to embrace ongoing education and be prepared to change with the times. A quality franchise organization will provide the guidance to manage a successful business as well as to stay abreast of the changes within the industry.

Pre-packaged marketing programs – most business owners have grand plans and desires to improve their marketing programs, but often fall short in their execution. Some franchisors take on the burden of marketing the brand directly for the franchise community, and most provide a comprehensive package that allows for easy execution on the part of the franchisee.

Purchasing Power – depending on the type of business involved, the cost reductions that a franchisor can provide to their network is often the single most powerful reason to consider a franchise versus an independent business.

Synergy of a network – this is often an under-appreciated benefit of a franchise brand. Most franchisors ensure that a system is in place that allows for quick and easy communication amongst all the franchisees. This allows for every franchisee to benefit from the collective brain trust of the entire network.