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What
are the advantages of buying a franchise?
Studies show that 90% of franchise business are still operating after
10 years, whereas 82% of independent businesses have failed.
" In
Business For Yourself But Not By Yourself"
According to U.S. Department of Commerce, although only 8% of businesses
are franchises, they represent 40% of all retail sales in the U.S.
Franchising methods are proven, and often better than trial and error,
and a franchise has a higher value than an independent business and
is easier to sell. Another reason franchises are successful is that
the synergy of a group of people, all contributing ideas and motivation,
is a benefit to each individual.
More than 60% of all franchisers have been in business at least a dozen
years. Industry statistics show that the franchise failure rate is
2.1% in the first year, compared to approximately 80% of all new independent
businesses.
A franchise is usually based on a proven business idea, which means
that not only has the franchisor shown the product or service to be
viable but all the systems required to run the business are already
in place. And as most franchises are recognized brand names you will
generally find it easier to sell to customers and, in turn, expand
your business.
As well as specialized training, franchisees also benefit from any
new products or services introduced by the franchisor. A franchisee,
while self-employed, remains under the umbrella of the franchisor throughout
the term of the contract. This is advantageous for the franchisee in
terms of marketing and advertising and has led to the widespread use
of the industry's adopted slogan: 'In business for yourself but not
by yourself.'
Among U.S. franchises, 65% consist of fewer than 100 stores and 49%
have under 50 locations. Compare this to Sedona, which in its first
3 years of offering franchises has sold over 300 franchise licenses
and over 70 opened!
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