Franchising has been called by many business experts, ‘the greatest marketing strategy ever created’. It is a program that creates amazing opportunities for business ownership and personal wealth.
In 2009 the Gallup Organization conducted a poll on franchisee’s ownership experience and attitudes. Here are some results:
• More than 90% said that their expectations were met or mostly met
• More than 90% said they considered their franchise to be successful
• More than 65% said that they would have not been as successful if they had tried to open the same business on their own
In the United States, only 8% of retail businesses are franchised. The amazing fact is that the 8% of franchised businesses do over 40% of the retail sales in the United States. Franchising has the ability to capture more of the market share.
When considering a business franchise the following three ingredients are essential to your success:
The brand name. An established brand provides a distinct advantage over an unaffiliated business. Not only do consumers believe they are buying higher quality products but it makes it easier to compete with the well-established, independent operators and also against other franchised chains.
A proven business model. A successful model allows franchisees to follow a plan with a high success rate. Franchisees can draw upon the experience of the franchisor and potentially save thousands of pounds of ‘ trial and effort’ learning experiences, not to mention the money that can be saved by implementing the most effective marketing plans and proven technology. Follow a proven model and you should achieve similar results of other franchisees.
Support. The franchise will have the expertise of successful franchisees and franchisor to help them succeed. They are not in business alone. Although the cost of entrance into a franchise system includes a franchise fee, the franchisee will benefit from training, operations manuals, site selection, lease negotiation, store design, construction savings, reduced cost of equipment and other advantages in buying power.
