Don't Sweat It
Oct 13, 2015 | Megan McClain
Don't Sweat It is all about providing listeners with quality information about the franchise industry, advice for business ownership and tips for making the work week smoother. On the show, I discuss topics ranging from franchising trends to whether or not entrepreneurs are born or made. Our goal is to educate you on the franchise industry and to help guide you toward smart decisions so you don't have to sweat the small stuff.
WHAT IS FRANCHISING?
A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name or advertising symbol and an individual or group seeking the right to use that identification in a business. The franchise agreement governs the method for conducting business between the two parties. Although forms of franchising have been used since the Civil War, enormous growth has occurred more recently. Industries that rely on franchised businesses to distribute their products and services touch every aspect of life, from automobile sales and real estate to fast food and tax preparation.
In its simplest form, a franchisor owns the right to a name or trademark and sells that right to a franchisee. This is known as product/trade name franchising. The franchisor can provide a full range of services, including:
Generally, a franchisee sells goods or services that are supplied by the franchisor or that meet the franchisor’s quality standards.
WHY DO WE ENCOURAGE ALL ENTREPRENEURS TO CONSIDER THE FRANCHISE OPTION?
The data shows franchise opportunities are a safer bet for long-term success than startups or existing business purchases. FranNet conducted a five-year study starting in 2006 that showed 92 percent of FranNet franchise placements were still in business after two years, compared to only 67 percent of other small business ventures (according to studies by the U.S. Census Bureau). After a five-year period, FranNet placements clocked in at an 85 percent success rate compared to only 50 percent of other small businesses.
IS THE FRANCHISE OPTION RIGHT FOR YOU?
Our local franchise consultants can help you decide if franchise opportunities are right for you. Our free, in-depth consultation can also help you determine which franchise is the best match with your goals, skill set and lifestyle.