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Franchising as an industry first came into its own during the 1930’s
and 40’s when several hotels and gas stations decided to begin
offering new dealers a comprehensive system of operational and marketing
strategies. Since that time the franchising industry has become
a national power in America’s economy and a blessing for risk-averse
entrepreneurs. Today, franchising is a major force in almost every
industry imaginable, accounting for a disproportionate share of
retail sales throughout the U.S. Here are some more interesting
statistics gathered from the website of the International Franchising
Association.
Why is franchising growing so rapidly? Because franchising works.
Franchising allows aspiring business owners to pursue their dreams
in an industry that they love while eliminating much of the risk
and guesswork that usually accompanies a new business start-up.
A franchise provides a proven system, a business model that has
worked and is working, usually for tens or even hundreds of other
franchise owners.
| Franchises
will generate more than 1 trillion dollars in sales this year.
While franchises only account for 8% of all service business,
they claim over 40% of all service-related revenue.
Franchises currently employ more than 8.5 million Americans.
According to statistics from the U.S. Department of Commerce,
less than 5% of franchise outlets fail annually.
In a 1991 study of 366 franchise companies opened during the
previous 5 years, Arthur Andersen & Company found 86%
of the franchise outlets to be still under the same ownership.
In the same study, Arthur Andersen & Company found 97%
of those businesses to be still in business.
By contrast, according to statistics derived from the U.S.
Small Business Administration, during a ten year period, over
60% of non-franchised businesses were ended within the first
6 years due to failure, bankruptcy or retirement. |
People buy franchises because they want to
be in business for themselves but not by themselves.
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Franchises
also provide their franchisees with . . . |
A
Proven Concept
|
Standards
and Quality |
| Name
Recognition |
Buying
Power |
An
Established Product
or Service |
Financing
Assistance |
| Tools
for Success |
Marketing
and
Advertising Clout |
Technical,
Operational
and Managerial Assistance |
Public
Acceptance |
Start-Up
Assistance
and Training |
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Franchising
has become the clear choice for entrepreneurs who acknowledge their
need for guidance and who value a long-term plan for business success!
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