Although franchises account for only 8% of business outlets in the US, they contribute 41% of the total sales volume. This number is predicted to grow to 50% by 2007.
Why does a franchised business do so well?
Why Franchising Works
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Less Risk |
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Proven Concept |
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Brand Name Recognition |
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On-going Support Mentoring |
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Group Purchasing Power |
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Camaraderie, Without a Boss! |
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On-going R&D |
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Legal Compliance |
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Co-op Advertising |
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Site Selection & Marketing Help |
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Best Practice Sharing |
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Building Equity |
Perhaps you are thinking about buying an existing business? Think again...
Disadvantages of Existing Business
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Higher cost than start-up |
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Inherit image problems |
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Current employees may not be suitable |
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May need to modernize or upgrade |
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Debt service you incur may strain profits |
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Price may be to high for value |
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Business may have already peaked |
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Existing location may be inadequate |
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New competition may be entering market |
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ACCURACY OF P & L’s MAY BE IN QUESTION! |
