The concept of franchising dates back to when Benjamin Franklin signed the first franchise agreement with Thomas Whitman. Therefore, franchising has passed the test of time. Even when other business models were suffering contraction during the recent recession, franchising continued to grow and expand.
Today, there are more than , franchise establishments spread across over industries in the United States. These franchise establishments employ more than 9 million Americans. Therefore, franchising is a leading creator of small independently-owned businesses in the country. Indeed, if you want to live your American dream as a small business owner, then buying a franchise is one of the most viable routes to take. As noted above, a franchise is a business arrangement between a franchisor and franchisee.
The two parties sign an agreement so that the franchisee can operate a business under the name of the franchisor. The franchisor is usually a company with a well-known brand and a huge loyal customer base. As such, when the agreement is signed, a franchise owner can open a business and immediately start to enjoy from an already existing customer base as opposed to starting from scratch. In exchange, the franchisee pays an agreed franchise fee, annual franchise license fee, future royalty fee, and other applicable charges.
More: What is Franchising? On average, a franchise in the United States costs about 35, dollars. However, depending on the specific franchise you are intending to buy, the franchise fee can be as high as , dollars or even more. Other fees such as training fees, auditing fees, and royalty fees can push the initial start-up cost even higher.
The good news is that even if you do not have this cash, there are a number of financing options that you can pursue. But of course, having the necessary amount of money to buy a franchise is not all that is required. You have to meet certain conditions and show your commitment to the franchisor's vision. Therefore, you have to undergo an interview during which the franchisor will try to understand your background. As a prospective franchisee, you will have to take this opportunity to prove that you have a clear financing plan and that you are trustworthy.
In addition to allowing franchisees to operate under the franchisor's brand name, there are a number of roles that a franchisor plays under the franchising arrangement. All Rights Reserved. Legal Notices Privacy Policy. Multi-Unit Franchising. Franchise Opportunities.
Franchise News. Get Started in Franchising. International Franchising. Open New Units. About Us. UBreakiFix uBreakiFix is a consumer electronics repair company based out of Orlando, FL that specializes in refurbishing and restoring smartphones, tablets, Right now, businesses are looking for new and better ways to compete.
Ace Hardware Ace is 1 for convenience hardware! You pay no royalty fees. Instead, Ace pays you a year-end rebate based on your annual purchases. Enjoy the Smashin Crab Smashin Crab was established with a strategy rooted in providing both superior service and quality food to our guests. Magazines Multi-Unit Franchisee Magazine. Magazines Franchise Update Magazine. Share This Page. Subscribe to Our Newsletters. Bonus Tip: For your opening day, invite your local Chamber of Commerce and members of business networking groups.
This will help spread the word about your new establishment among influential members of the business community. Like you, many people dream of owning their own business. Buying a franchise has enabled hundreds of thousands of Americans to achieve that dream.
These entrepreneurs were able to leverage the brand strength and business expertise of their franchisors to hit the ground running from the day they opened. By following the 10 steps outlined above, you can join their ranks.
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New Order? Existing Order? Toggle navigation. LLC More Learning Center Start-up Tasks Corporation vs. About Us About incorporate. How to Start a Franchise in 10 Steps. Should I start a franchise? What Does Franchise Mean? What types of franchises can I choose from? Convenience stores, like 7-Eleven or Circle K. Health and fitness establishments, including gyms like Anytime Fitness, eye care centers such as Pearle Vision, hair care businesses like Sports Clips, and spas such as Massage Envy.
Pet-care businesses, including Dogtopia and Camp Bow Wow. What are the steps to start a franchise? Step 1: Consider the pros and cons of buying a franchise. Start a business with a proven track record. Starting a franchise allows you to buy into a business model that has already proven itself in the marketplace. Start-up costs can be expensive. Starting a new business can be an expensive proposition. You need sufficient starting capital to purchase or lease space for your business, acquire equipment and starting inventory, obtain necessary business licenses and insurance, and hire and train staff.
Start your business with a built in support structure. Franchisors would like to see their franchisees to succeed. Naturally, franchisors are driven to help their franchisees with services like business advice, training, and advertising.
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