The phenomenal success and growth of the franchise business model in the U.S. continues to create viable business opportunities for qualified individuals in Arizona and beyond. There are currently over 750,000 franchise businesses in the U.S. alone. Franchising currently accounts for 40% of all retail sales in this country, nearly $800 billion worth and growing. Simply put, franchising is and continues to be the most successful business model for distributing goods and services in the economic history of the world.
Advantages Of Franchise Business Model:
The primary reason you should consider franchising is it gives individuals the opportunity to go into business for themselves with an excellent chance of success at a minimum of risk. Starting a new business from scratch is inherently risky. Most studies conclude that over 90% fail within 3 to 5 years. In comparison, U.S. Dept of Commerce studies have shown that approximately 70% of franchised businesses are still operating after 5 years.
Why Franchising Works- Other Benefits
• Established products or services: A franchisor offers a product or service that has been successfully developed, tested, refined and sold.
• Marketing Assistance: This includes assistance in developing effective marketing plans for a local market. In addition the franchisor has resources and experience to develop regional and National marketing programs that benefit all franchise owners.
• Start Up Assistance: Established franchisors have the experience and knowledge to help new franchise owners transition from a start-up to a profitable ongoing business.
• Management Assistance: The franchisor is able to transfer a wealth of knowledge on how to successfully manage and operate a new business.
• Brand Name Recognition: Established franchisors can offer National or regional brand name recognition.
• Financial Assistance: Established franchisors can often offer assistance in financing a new franchise either directly or through arrangements with other lending institutions. Generally it is much easier to obtain financing for an established franchise than a start-up business. Much easier.
• Proven System & Business Model: An established franchise is able to transfer a proven and refined system of operations. This includes operating and management efficiencies developed by the franchisor. Uniform operational standards such as quality control benefit all franchise owners
Choosing A Franchise:
With over 3,000 franchise opportunities to choose from in the U.S., finding the one that best fits your specific needs and objectives can be a daunting process. Here a just a few basic questions you should ask yourself when considering a specific franchise:
• Dose it fit into any areas of your interests? We believe that finding a business that you like and will enjoy working at should be a major consideration.
• What are your skills and experience levels in business in general? Do they compliment the franchise you are considering?
• How many dollars do you have to invest?