Franchising has increased dramatically during the last two decades and is quickly being recognized as one of the most effective ways of doing business. It combines the drive and ambition of the small businessperson with the experience and expertise of the Franchisor. The result is often a winning strategic-partnership for both parties.
The success rate of franchise businesses is much higher than that of independent businesses.
- According to Franchise World Magazine, a franchise business has a 92% success rate after 5 years compared to a 23% success rate of an independent business after the same period of time.
- There is only one Franchise bankruptcy to every 40 independent business bankruptcies in North America (5,000 vs. 200,000 annually, respectively).
- Although only 3% of businesses in North America are Franchises, 40% of retail and service business is conducted by those franchises every year.
- There are now over 600,000 Franchises with over $600 billion in sales in North America.
A successful Franchise relationship means you are joining a team where members have common goals. Together, the Franchisor and Franchisee work to build a strong company image, develop the market and increase profits. Individuals with an entrepreneurial spirit and a desire to work as part of a team are the most effective Franchise candidates.