Why Franchise?

Although franchises account for only 8% of business outlets in the US, they contribute 41% of the total sales volume in 2005. This number is predicted to grow to 50% this year. What's more, a recent study showed that the median gross annual income (before taxes) of franchisees was in the $50,000 to $99,000 range, with over 30 percent of franchisees earning over $100,000 per year.

Why does a franchised business do so well?
• Less Risk
• Proven Concept
• Brand Name Recognition
• On-going Support and Mentoring
• Group Purchasing Power
• Camaraderie, Without a Boss!
• On-going R&D
• Legal Compliance
• Co-op Advertising
• Site Selection & Marketing Help
• Best Practice Sharing
• Building Equity

Sometimes buying an existing business is the right idea for a prospective entrepreneur, but there are pitfalls...
• Higher cost than a start-up or franchised business
• Potential to inherit image problems
• Current employees may not be suitable
• May need to modernize or upgrade
• Debt service you incur may put a strain on operating revenue
• Price may be to high for value
• Business may have already peaked
• Existing location may be inadequate
• New competition may be entering market
• ACCURACY OF P&L’s MAY BE IN QUESTION!

Nobody regulates the information that the "Mom and Pop" business provides to you. Franchises are REGULATED on such information and must provide ALL FACTS to you on history - the good and the bad.

Franchise Facts To Consider:

• Franchised businesses account for 50 percent of all retail sales in the United States.
• Franchised businesses employ millions of Americans.
• A study by a leading accounting firm found that 86 percent of franchises opened within the last five years were still under the same ownership and 97 percent of the, were still open for business.
• A U.S. Department of Commerce study conducted in 2005 showed that less than five percent of franchised businesses were closed each year.
• Compare that to a U.S. Small Business Administration study, which found that 62 percent of non-franchised businesses closed within the first six years of their existence due to failure, bankruptcy, etc.
• Total sales by franchised businesses are projected to reach $1.8 trillion this year.
• One of every four businesses is a franchise. A new franchised business opens every eight minutes each business day.