Franchising Basics
Franchising is a proven business format that grows businesses quickly. Hundreds of thousands of people have opened their own business by buying a franchise. Franchises create thousands of jobs each year, help develop local economies and provide endless business opportunities.
Watch the Franchising Basic video SBA and FranNet created - click the blue box.
Buying a franchise is a wonderful way to go into business for yourself – but not by yourself. Franchises have proven systems and a team of people in place to make sure you are successful in building your business.
What is the franchise business?
The franchise business is basically a licensing system by which the owner (licensor or franchisor) of a product or service licenses others to market his product or service (franchisees) within a defined territory following the guidelines established by the licensor.
There is virtually no product or service that is not available to the consumer through a franchise business.
Franchising has over 3,100 franchise concepts available today in almost 300 industries with over $2 trillion dollars in revenue per year with outlets employing over 12 million people. It includes hotels, automotive and repair, business services, cleaning services, restaurants, educational services, health and fitness, senior care, pet care, printing and publishing services, personnel staffing/coaching, retail stores, computer, manufacturing and almost any field you can name.
Operations which are franchised provide a number of benefits such as:
- training,
- start-up assistance,
- purchasing power,
- marketing programs,
- tested operating systems, and
- continued support.
Which all part of a “safety net” for individuals entering the world of the franchised business owners.
