The latest researches show that there are over 2,500 franchise systems in the United States and they have over 534,000 units. This means close 3.2% of all businesses, and 35% of all retail and service revenue in the United States. The clearest advantage of franchising is the reduction of risk for your investment. Franchises are easier to start, and become profitable more quickly. This is because the management is better and the name is well-known. The Small Business Administration (SBA) says that most small businesses fail because of weak management. This is where the franchising option shines the most. If you lease a franchise, you are in fact choosing their managerial know-how.
Usually these are better deals, because the Franchise Company can buy goods and supplies in bulk for the entire chain, and you and the other franchise units get those savings. Another big plus is the instant recognition from customers who are dealing with something "known" rather than something "unknown." Think about it a little… If get to a town youve never visited before and have to choose between "Billy Bobs Fried Chicken" and a "Kentucky Fried Chicken," which one are you going stop at? If you do not know how good Billy Bob’s place is, you may not want to risk.
The customer has the advantage of the comfort of knowing what hi is getting. You know that the quality of the product or service is the same in every location, and that they have all the qualities that you want. As a potential franchisee you should establish if you are looking for something that is uniquely yours, or you want to run the show, no matter on who elses rules.
Are you looking to make money on your next Franchise or are you looking for a great investment? Take a look at our site for some great information on Buying A Franchise. http://www.franchiseopp.com