Take advantage of the dominant
business growth model

As an aspiring entrepreneur, you’ve got a lot of research to do – and we’re here to help. There’s a lot to learn about the world of business ownership, and the franchise model is no exception to the rule. Let’s dive in.

How does franchising work?

Franchising is a model for business expansion based on an agreement between a brand or company, the franchisor, and a business owner, the franchisee. To put it in its simplest terms, a franchisee pays a fee and agrees to follow the processes and methods the franchisor has established for their system, and the franchisor allows the franchisee to open a business selling their products and services and using their name, proven systems and operations.

And the industry is growing

Now that there are franchised business in 80+ industries, there’s something for just about everyone. And that’s led to some pretty big growth.

$713+ billion
industry output
7.9 million
workers within the industry
745,000+
franchise establishments

_{Franchise Business Economic Outlook 2018, IFA}

Why do people invest in franchises over startups?

Lower costs

With wider networks of buyers and suppliers, franchise systems have greater buying power and an optimized supply chain to keep purchasing costs down. And, since banks trust franchisors’ proven models, they’re more likely to lend for a franchise investment.

Why do people invest in franchises over startups?

Lower risk

Statistics vary, but many put the average success rate of a franchised business somewhere between 60% to 99%. Because they’re part of a proven system and a successful brand, franchises are just more likely to work.

Why do people invest in franchises over startups?

Reliable support

The corporate base of a franchise, the franchisor, receives revenue from the stores they own and operate as well as royalties from franchised locations, so they have a bigger budget to establish systemwide support, training, marketing, etc.

Why do people invest in franchises over startups?

Lower costs

With wider networks of buyers and suppliers, franchise systems have greater buying power and an optimized supply chain to keep purchasing costs down. And, since banks trust franchisors’ proven models, they’re more likely to lend for a franchise investment.

Why do people invest in franchises over startups?

Lower risk

Statistics vary, but many put the average success rate of a franchised business somewhere between 60% to 99%. Because they’re part of a proven system and a successful brand, franchises are just more likely to work.

“Looking back it’s the kind of thing that is almost embarrassing. I know I asked you a million questions and drove you a crazy along the process. Excited, then scared, then excited, then scared. As much as I have always wanted to own my own business actually taking steps to do that is a little scary. We really can’t thank you enough for explaining things to us, talking to us about the FDD and helping us move forward in baby steps. My sister-in-law is thinking about leaving her job and becoming a franchise owner and you bet I’m going to have her contact you. You made the process a lot easier for me and I don’t know if I would have really crossed the line if it had not been for you. My husband and I feel like you’ve changed our lives. Thank you.”
Linda G.

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