WHAT IS A FRANCHISE?
A franchise is a license to use the Franchisor’s trademark and proprietary business system at a particular location or within a certain geographic territory for a defined period of time.
HOW DOES THE FRANCHISOR MAKE MONEY?
As a franchisee you pay a number of fees to the franchisor. Some of these fees are one-time, like the franchise fee, but, most are ongoing: royalties, national advertising, regional advertising, technology and vendor rebates. These ongoing fees can be collected monthly or weekly.
WHAT ARE THE BENEFITS OF JOINING A FRANCHISE?
By joining a franchise you get an established brand, business training, a detailed operations manual, ongoing corporate support, a supportive franchisee network, vendor relationships and quality control.
HOW IMPORTANT IS THE FRANCHISE INDUSTRY
While franchises make up less than 3% of all businesses, they represent nearly 12% (1 in 8 jobs) of all jobs. Franchises make up 10% of total Gross Domestic Product (GDP)
PROS & CONS OF FRANCHISING
High Success Rate Versus a Startup
Proven Business Model
Marketing & Brand Awareness
Combined Buying Power
Transparent and Easy-to-Conduct Research
Authority of the Franchisor
Conflict of Interest with the Franchisor