Advantages of the Franchise Opportunity

Franchising drives the marketplace for consumer goods and services in all sectors of the economy from fast foods to health spas. Annual retail franchise sales in the year 2000 were $1 trillion with an estimated 40% of all retail sales in the U.S. coming from the franchise industry. The franchised business relationship affords advantages to both franchisors and franchisees.

From the perspective of a franchisee, a franchise is an opportunity to start a business that has already acquired brand recognition and successfully proven itself in the business world. The franchisee can avoid the pitfalls a new business often encounters and benefit from the management skills and experience of the franchisor.

The advantage a franchise opportunity affords from a franchisor perspective is that the investment required for business expansion is less capital intensive. The franchisor benefits from the franchisee’s investment in a business providing the franchisor’s trademarked goods and services to consumers. Furthermore, the vested interest on the part of the franchisee usually results in hard work and a strong commitment toward making the franchise business successful. Through the combined efforts of everyone involved, the franchisor is given the opportunity to establish national trademark recognition, grow its business and still have the versatility to oversee operations and ensure consistent delivery of products and services.