There
are many reasons but one is absolutely compelling. Franchises have a
90% plus success rate! We live in a world of difficult new realities
---- downsizing, industry consolidation, outsourcing overseas and
rapidly changing technologies. Most people can’t even predict that
they’ll keep their
jobs with a 90% confidence level. So, what are
some of the other reasons that people buy a
franchise business
instead of starting their own?
Franchisors provide you with a proven business
model and system to follow.
Franchisors have a vested interest in your
success.
The marketplace has already been checked out by
the franchisor and determined
the system to be successful.
The franchisor utilizes collective buying power
and passes on the discounts to you.
Local and national advertising for the franchise
operation as a whole is supplied by
the franchisor.
Supervision, training programs and consulting
are readily available from the franchisor.
Managerial, operational and accounting systems
are in place to facilitate your success.
Ongoing research and product development is
provided by the franchisor.
Franchisor business practices are tightly
regulated by the federal government.
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.
A U.S. Department of Commerce study conducted
from 1971 to 1997 showed that during
that time less than 5%
of franchise 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.
