Franchising has been called the last and best hope for those considering buying a business of their own. Franchising allows small business owners an opportunity to compete successfully with giants. They offer a unique opportunity for a person with limited business experience to benefit from the learning curve of others.
Compared to independent start-ups, franchised enterprises offer a remarkably high probability for success. According to the United States Department of Commerce, 90% of all franchise units are still operating ten years after start-up, while only 16% of independent business start-ups survive the same time period.
Cooperative advertising, collective buying power, rapid market penetration and widespread visibility are clear advantages of franchising versus other business methods. The belief that large amounts of capital are always required to buy a franchise is not true.
The fastest growing franchises are those offering a complete business format. In these cases, the developer for the business concept (the franchisor) grants to an individual (the franchisee) the use of an established trademark, access to system-wide promotion, proven operating procedures, group purchasing power and the goodwill and know-how of an experienced enterprise. Each franchisee is trained in the operations of the business and received ongoing management support.