The latest data shows there were nearly 800,000 franchise establishments in the United States worth more than $760 billion and employing more than eight million people. The majority of these businesses are quick-service restaurants, but they also consist of restaurants, commercial and residential services, and real estate. Franchise owners make lucrative livings from these established business models. They are less likely to fail and offer an established brand and the support of the parent company to ensure your success.
If you’re considering becoming a franchise business owner, this article will help you learn more about this lucrative business model and determine the benefits that make it an attractive choice for entrepreneurs.
What is a Franchise?
The International Franchise Association calls these business models “A method of distributing products or services.” The owner of these businesses pays a company for the rights to use the brand’s trademark and business systems to open storefronts or operate online. It’s not a one-off relationship; the franchisee, or owner of the business, works under the umbrella of the parent company and is subject to their brand standards throughout the history of their franchise.
Benefits of Franchising
For the franchisee, there are many benefits from taking on these established business models. These can include:
- You will enter into an established business framework with a higher level of guaranteed success over creating something from scratch. There are established business workflows that can help you succeed faster.
- Since these arrangements usually come with the requirement that the franchisee pays a portion of their profit back to the parent company, they have a vested interest in making sure you succeed. If you find yourself struggling, the parent company can lend advice and support.
- Plus, there is a brand name associated with the franchise that people recognize, such as McDonald’s or Wendy’s. This can automatically send new business in your direction. The goal of every business is to create a brand that people see and recognize. A franchise comes with the brand already established.
- While some franchises may require a particular level of business expertise or experience, this is many times not the case. Most parent companies provide you with the training you need to run the business. Their goal is to make sure you live up to the customer’s expectations and that your business succeeds. Everything from how to market your company to new security procedures to where to buy more products and services is dictated by the parent company.
- For all of these reasons, if you purchase a franchise, you have a higher shot at succeeding in your business venture. That’s a huge benefit that a solo entrepreneur simply doesn’t have. Entrepreneur says 85% of independent businesses fail compared with only 10% of franchised companies. That’s a great number that you can take to the bank.
Gecko Hospitality works with franchisees to provide their businesses with the staffing they need to get the job done. Whether it’s staffing up for the holidays or providing permanent top talent, our market niche is designed to support your business. How can we help you today? Contact us to find out more.