Defined: Franchising is a business method that involves the licensing of trademarks and specific methods of doing business. This can relate to chain stores which are retail outlets which share a brand and central management but also an exclusive right to sell or offer branded merchandise and services without a retail location necessary.
How Does Franchising Work?
The Franchisor collects a one-time fee plus a percentage of sales revenue in royalty from the Franchisee who gains immediate name recognition, tried and tested products and services, standard building design, detailed techniques in running, promoting and supporting the business, training of all employees and ongoing help in promoting and upgrading the systems.
Basically, the Franchisor and the Franchisee enter a profitable partnership together, like a business marriage. Throughout the term of your franchise partnership, you will have the benefit of being in business for yourself but certainly not by yourself.
From the 1930’s and ’40s hotels and gas stations began offering systematic business strategies to replicate their model and since then the industry of franchising has become a powerhouse of America’s economy.
In almost every industry imaginable, franchising allows people who are tired of working for someone else become their own boss with a proven business model, allowing for speed to market so that from day one their time and efforts go toward making money instead of trying to figure out how to make the money.
What Does It Cost to Buy a Franchise?
Most think buying a franchise is out of their reach. Franchises are more affordable than you think. Typically $50,000 is needed to readily invest with the ability to finance the rest. Multiple financing options are available and on your journey, we can help guide you into the financing experts who can deliver free education surrounding all of your viable options with self-funding with a franchise business opportunity.
Average Franchise Cost Breakdown
Source – FranData
Average Initial Investment Ranges
Under $50,000, 13%
$50,001 to $100,000, 17%
$100,001 to $250,000, 28%
$250,001 to $500,000, 23%
Over $500,000, 18%
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* Conducting a self-discovery session with a franchising advisor could increase your odds of success as a franchise owner. Schedule an exclusive Franchise Ownership Consultation to start planning your future!