The Strength of Franchising


Franchising is the most popular system for growing a business in the United States today. According to every government survey, franchising has experienced explosive growth since the mid-70s and is expected to be the leading method of doing business in the new century.

In the United States, there are over 2,500 franchise systems. These systems have in excess of 534,000 franchise units, which represent 3.2% of the total businesses. This 3.2% of all businesses controls over 35% of all retail and service revenue in the U.S. economy.

Franchising advantages over going into business for yourself include; opening quicker, experiencing success sooner, developing a customer base faster, having less risk and being more profitable.

 
Success as a franchisee is, in most cases generally based on the success of the franchisor to operate company unit(s) and, upon the success of existing franchisees. Generally it should be able to show that the business can be successful in various markets and in different conditions.