Franchising
Why buy a Franchise
Franchising's primary purpose is risk minimization. Surveys show that the success rate of franchises is much greater than starting ones own business. 90% of franchised businesses are still operating after 10 years while 82% of independent businesses have failed. A recent Gallup Poll of franchisees found that over 94% considered themselves successful and that over 75% would buy their franchise again if they had it to do over.
Another reason why it is wise to buy a franchise is that the franchise "package" you receive from your franchisor at the outset will normally include operations and marketing guidance. You will not have to spend time or money developing these. You should also receive practical help in setting up your operation, which means that you are more likely to avoid any major "start up" problems. The franchisee gains the advantage of the experience and expertise of the franchisor who should have a proven business system in place.
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