Say the word “franchise” and people immediately get the idea that you’re talking about fast food restaurants, or they think of legally complex and very expensive businesses. Too bad. Because for everyman and everywoman, buying and operating a franchise may be their ticket to financial freedom.
Here are some little-known facts about franchising:
o There are 900,000+ franchised small businesses in 75 different industries
in the USA! In Canada there are more than 65,000. Many more worldwide.
o More than 11-million people are employed in franchising in the USA.
o Output produced by franchising in the USA grew from $1.5-trillion in 2001 to more than $2.3 trillion in 2005, according to the International Franchise Association Educational Foundation.
o Franchises account for more than 40 percent of all U.S. retail sales; nearly
50% of retail sales in Canada.
o A new franchise outlet opens somewhere in the U.S. every 8 minutes!
Every 2 hours in Canada!
o Approximately 1 of every 12 U.S. retail business establishments is a
franchise.
People from all walks of life buy franchises. Some of the most successful franchisees have little formal education. Others got started with a small amount of money, and even then some of it was borrowed money. Skill level doesn’t matter much in franchising. What does?
Desire! The common denominator in hundreds of interviews that I’ve conducted with franchisees is the desire to be independently employed, or to be the boss, or to own a business, or to escape the corporate rat race. Frequently it’s also a desire to become financially independent, and thousands of franchisees have accomplished that goal.
Will franchising work for you? It depends. Franchising is not for everyone, but for most people it is the safest way to start and operate a business today. Here are several points that will help you determine if franchising is an option that you should pursue:
o Are you willing to follow an established business system, as opposed to doing it all your way? Assume the system has proven to be successful.
o Are you willing to pay an upfront fee in exchange for a franchise license that grants you the right to operate a business under a national trademark? These fees range from a few thousand dollars up to $50,000.
o Are you willing to pay an ongoing royalty in exchange for the franchisor providing you with training, support and additional business assistance?
o Are you a good team player? Once you’re part of a franchise network you’re expected to cooperate with other franchisees. One bad apple spoils the bunch.
Regardless of how smart you are or how much money you have, if you answered No to any of the above questions it’s probably not a good idea for you to pursue franchising.
If you answered Yes, your next step is to begin doing some homework, much of which you can do via the Worldwide Web. A good place to start is the International Franchise Association.
Gather some information, look at several franchise opportunities, seek appropriate advice, and in a matter of several weeks to a few months you might find yourself signing a franchise agreement. And that just might be your ticket to financial independence!