How does Franchising work?
In exchange for an initial fee and a share of the revenue earned, the franchisor:
Grants the franchisee the right to use his brand system
Provides on-going training, support and guidance
Provides certain operating tools
The license (franchise agreement) is granted for a defined geography and
specific period of time
The franchisee agrees to operate the business in accordance with specific
The franchise sector has been expanding at a faster pace than the overall
business sector in recent years. According to the International Franchise
Association (IFA), from 2001 to 2005 the output of franchised businesses
grew by more than 41 percent, while the economic output of all businesses
grew by only 26 percent. By combining business ownership with a well-known
brand name, experience and an established franchisor, franchisees and
franchisors form a unique, mutually beneficial business relationship.
Benefits of Franchising
Owning a franchise offers most of the benefits of traditional business
ownership with far less risk and provides additional aspects to assist
with success. By buying into a franchise, you have the immediate backing
of a recognized brand with a proven track record and business system.
Franchise ownership provides:
A proven idea for higher chance of success
Reduced risk of failure compared to starting up an independent business
of same type
Name recognition and acceptance
Corporate purchasing and negotiating power
Training and operational support from experts in the business
Access to others in the same business, their knowledge and experience
Favorable view of franchising by lenders, as risk is reduced in a franchise system
Ease of selling your business when you choose to, due to all of the above.
Risks of Franchising
Franchising is a commitment of your time and resources. You need to carefully
consider questions such as: What would a typical day be like? Are you
cut out to be your own boss? Are you good at delegating / supervising?
Do you have the financial resources to live on while the franchise gets
off the ground? Can you follow a system?
What Franchising can do for You
Franchising means being in business for yourself, but not by yourself.
Whether it's accounting and financing, advertising and public relations,
personnel management, purchasing, or inventory control, franchisors are
there to provide "hands on," one-to-one assistance. While franchising
does provide opportunities, it does not create miracles. Franchisees combine
knowledge and resources with entrepreneurial drive and spirit to form
a business relationship unique to franchising. Franchising is a field
of expanding economic opportunity in which each and every person can play
a part based on talent, initiative, and dedication.
19 Commonly Asked Questions About Franchising!
A franchise of The WAITING GAME® can help you achieve many of your
personal and financial goals. We give you the freedom to run your own
business, but with a supportive community of people doing the same thing,
a proven business model and a trademarked name. We allow you the opportunity
to be in business for yourself, not by yourself.
To learn more about franchising, visit the
International Franchise Association (IFA) website or call us at (877) 444-9248.