Why Franchising Works
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“I’m in business for
myself, but not by myself”

-anonymous business franchise owner

  Contact Info:
P.O. Box 204476
Austin, TX 78720-4476
Toll Free 800-698-2071
Fax 512-308-6849

Why Franchising Works?


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.