Why Buy a Franchise?

There are many reasons to start a business through franchising rather than an individual start-up:

• Name recognition

• Ability to expand easily

• Greater buying power due to mass purchasing

• Start-up training

• On-going support from the franchise company

• Low start-up costs

• Higher potential for asset appreciation

But nothing speaks louder than the
U.S. Department of Commerce Seven Year study of
Franchise vs. Independent Start-Up Success Rate

According to the U.S. Department of Commerce, franchise businesses are exponentially more likely to succeed than individual new start-ups, particularly if you look at the figures over a five or seven year period. According to the Department of Commerce figures, after seven years, 91% of new franchises are still in business, as compared to only 20% of individual new start-up businesses.

The Future of Franchising

Within the next 10 years, franchises will comprise over 50% of the retail economy and employ millions of people. This growth should be anticipated based on the simple logic of the underlying concept; franchises offer success to aspiring, new business owners with the least amount of risk. These systems will enable hundreds of thousands of new business owners to realize the dream of successful business ownership and financial independence. Like the U.S. and world economies, franchises are evolving. There will be even greater opportunities for wealth creation among both franchisees and franchisors as this evolution progresses. New franchises will be developed while the existing systems become more fortified and continue to grow.