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Frequently Asked
Questions on the Franchise Opportunity |
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What are the
different franchise types and options? |
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Why should I work with a business
ownership coach? |
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How can you provide these services at no cost to me? |
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What is franchising? |
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What can a
franchise do for me that I couldn’t do for myself? |
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How does a franchisor make money? |
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How do you
find the "hot” franchises or business opportunities? |
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What are some of the key
statistics on franchise businesses in the United States? |
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What are the
different franchise types and options? |
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Traditional retail products and
services where the customer
comes to the store |
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Mobile products and services
where the provider goes to
the customer |
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Home based businesses |
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The products and services include
over 75 industries - - - everything from advertising to
automobile repair, printing services to party supplies, real
estate to rental equipment, tanning centers to travel agents and
many, many more. For a more comprehensive list,
click here. |
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Why should I work with a business
ownership coach? |
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Our coaches offer a highly
organized and systematic approach
that has already worked for thousands of people looking to buy
a franchise business. Most of our clients learn of franchise
opportunities that they never would have found on their own.
And we provide our services at no cost to you. |
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How can you
provide these services at no cost to me? |
There is never any fee or
obligation for our franchise opportunity and ownership coaching services.
We
can provide services at no cost to you as we are paid by the franchisor. But
this only happens if
we provide outstanding service in finding you the
right
franchise opportunity. As we work together,
you will gain new insights about
yourself as well as the franchising business. You can cease to
investigate
franchise opportunities at any time with no further obligation of any kind. |
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What is
franchising? |
Franchising is a method of
distributing goods or services to consumers. The franchise system owns
the
right to the trademark
of the business. The franchisee purchases the right to use the trademark
and
business operating system.
Most people associate the word “franchise” with fast food restaurants, like
McDonalds
or Subway.
But, there are many more types of franchise businesses,
including everything from advertising to automobile repair, printing
services to party supplies and many more. |
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What can a
franchise do for me that I couldn’t do for myself? |
A business franchise
provides you with a proven business model
and operating system. Remember
those old sayings about not reinventing the wheel and learning from other
people’s mistakes.
People who buy franchises have a significantly lower rate
of failure.
A 1999 study by The United
States 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. The U.S. Small
Business Administration study conducted from 1978 to 1998, found that 62% of
non-franchised businesses
closed within the first
6 years of their existence
due to failure, bankruptcy, etc. |
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How does a
franchisor make money? |
Usually a franchisor
charges a flat amount called the franchise fee for the rights to operate a
franchise. The fee is in addition to the costs to open the business in the
franchisee’s chosen
location. In addition, franchisors receive ongoing fees
on sales or revenues
that vary greatly
but typically are in the 6% to 10%
range. Most also collect
an advertising fee to support
advertising and other
promotional efforts. These too vary but usually range from 2%
to 4% of
revenues. |
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How do you
find the "hot” franchises or business opportunities? |
There are many successful
franchises, but not every franchise is right for every individual. Finding
a
"hot" opportunity is never our goal, nor should it be yours. Our mission is
helping you find the
right franchise opportunity. A franchise that matches
your goals,
competencies, interests, financial capability and one that you believe has
the potential to achieve the results you desire. |
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What are some of the key
statistics on franchise businesses in the United States? |
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Did you know that: |
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Franchise businesses
account for about 50% of all retail sales
in the United States. |
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1 out of every 12
businesses is a franchised business. |
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A new franchised business
is opened every 8 minutes of every business day. |
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Franchise businesses employ
more than 14 million Americans. |
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There are an estimated
1,500 franchise companies operating in the U.S. doing business
through more
than 316,000 retail outlets. |
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More than 75 industries use
franchising to distribute goods and services to consumers. |
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A 1999 study by The United
States 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. |
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A U.S. Department of
commerce study conducted from 1971 to 1997 showed that during
that time less
than 5% of franchised businesses were closed each year. Compare that to
a
U.S.
Small Business Administration study conducted from 1978 to 1998, which found
that
62% of non-franchised businesses
closed within the first 6 years of their existence due
to failure,
bankruptcy, etc. |
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Total sales by franchised
businesses are projected to reach $1.7 trillion, this year. |
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In 2000, the median gross
annual income, before taxes, of franchisees was in the $75,000
to $124,000
range, with over 30% of franchisees earning over $150,000 per year. |
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