5 Surprises about Franchising
The Small Business Dictionary describes franchising as “a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees)”. Franchising is a great way to own a business that provides proven systems, marketing, training, and support. If you are just beginning your search for the right franchise – you may find the following facts about franchising surprising.
1) The shear number of franchises – no one knows how many individual franchise concepts exist since it is a number that is constantly changing. The number is anywhere from 1600 to 3000 different concepts.
2) The process that is required in order to buy a franchise is not easy. Each franchise has a process with a certain amount of steps to follow in order to determine if the franchise is a good fit. This can be a very extensive process and requires the potential franchisee to follow the steps. After all, the franchisor wants to work with franchisees that will follow their systems and procedures – if the potential franchisee won’t follow the steps to determine if the franchise is right for them – would they really be a good franchisee?
3) Anyone can franchise their business. Anyone who feels their business is viable for franchising and wants to go through the legal aspects and has the capital can set up a franchise.
4) Food is by far not the only franchise option! There are franchises in many different industries – over 70 different categories exist.
5) The franchise fee is not the only cost to own a franchise. There are other costs depending upon the franchise type: location, training, inventories, royalties, and other requirements.
The franchise industry is growing everyday in terms of numbers of franchisors, units, employees, and franchisees. To learn more about franchising check out our website at https://www.selectfranchiseconsulting.com