Franchises account for over 40% of retail sales today. You may go to any center and find franchises operating there. With over a century of History behind them, franchising is a strong, efficient way for you to venture into your new business. What are franchise opportunities? What does it mean to me and will it work in my area?
Franchising became a growth industry after World War II. Millions of US servicemen and woman returned home and needed products and services. Subsequently, today the Baby Boomers are still driving expansion of businesses. In the 60’s and 70’s franchising grew, and with that growth came abuses and unreliable businesses. Many joined franchise opportunities, and lost what they had due to undercapitalization and or poorly managed franchisors. With this type of challenge it became clear that the franchise industry had to improve to be viable as a business concept.
In and around 1960, the International Franchise Association was formed. Their mission statement says, “The International Franchise Association protects, enhances, and promotes franchising.” The intent of the IFA was to enhance the franchise industry. They hold trainings and work to improve the professionalism of franchise opportunities. The IFA works closely with Congress and the Federal trade commission on improvements for franchises.
As a regulatory measure, the Federal Trade Commission, in 1978, began to require that all franchisors offer a document called a Uniform Offering Circular (ufoc), today called a UFDD. The UFDD or disclosure document offers information about the ownership of the franchise, litigation history, audited financial statements and a current list of franchisees. The intent of the UFDD is to provide good information to the potential franchisee, so that you may make an informed decision. Many states have their own requirements on top of the UFDD.
The growth of franchising will continue as we move more into an international market and increase in population. No matter the economy, there are franchises that still grow and do well. Franchise opportunities are evolving, and provide entrepreneurs greater opportunity for wealth creation. The relationship between Franchisors and Franchisees are moving toward stronger Win Win relationships. Franchising offers a system that can be duplicated, and you can learn to operate a new business in as little as 3-4 months and have success.
Whether you are looking at a hair salon franchise, Kids franchise, consulting franchise or green franchises, there are ample opportunities. Some of them offer earnings claims and others do not. Your job is to do your due diligence and come to your own decision.
The first thing to do is get an action plan. Getting started in a new business or franchise requires focus, determination and hard work. There are no get rich schemes. Honest to goodness old fashion hard work and action is the secret. You can do something or do nothing, but you will get the results of your efforts. Start immediately with an action plan, a to do list and I say some professional help. You can find franchise opportunities for as little as $6,000 and go to $1,000,000. They do not have to be insanely expensive. There are dozens of franchises for under $20,000. Start today and set your goals high enough to inspire you. You can do it.