It’s been estimated that less than 12% of the businesses in North America are franchised, but they account for over 50% of all North American retail sales –more than four times their share of the dollars. And there’s areason why franchisees get more than their fair share of the market. In general,franchisingoffer you:

• Experience: franchises already have units up and running. This means that you can avoid expensive start-up mistakes
• Training: You’ll be taught what you need to know to start and run the business
• Support: You’ll have the advantage of ongoing managerial, marketing, sales support and research and development to keep up with the changing times and market conditions
• Support of other franchisees: this is a frequently overlooked benefit, but franchising is probably the least political system going with the vast majority of franchisees really working togetherto “row in the same direction,” build the brand name and contribute to one another’s success
• Advertising: Professionally prepared and well tested advertising can give you a huge advantage in a competitive market. Cooperative advertising programs with the company and other franchisees can provide national exposure at a more affordable price
• Site Selection: You’ll receive advice in selecting a site and arranging the interior for your most efficient usage
• Name recognition: Brand names bring more customers into the business and provide a competitive advantage that independent units can never afford
• Speed and Efficiency: The franchisor will save you time in starting up so that you can begin working with customers right away instead of trying to work out unforeseen problems
• Simplicity: Franchisors try to keep your business as simple as possible so that you can concentrate on the activities that will make you the most money
• Friendship: Because franchises often tend to attract certain personality styles to each type of business, you will find many like-minded people in the group. You’ll make friendships that canlast a lifetime.
• Friendship: Because franchises often tend to attract certain personality styles to each type of business, you will find many like-minded people in the group. You’ll make friendships that canlast a lifetime.
• Regulation: franchisor business practices are tightly regulated by the Federal Trade Commission. You will be provided with a good deal of information that is required by law for the franchisor to disclose before you ever make theinvestment. Some of the disclosures include the names and contact information of every single person in the system; any lawsuits or pending litigation; background on the management team and corporate financials.
• Financing: While franchisors do not provide financing directly for their franchisees, it is relatively easy to get loans for a franchise given the proven track record of success. Having said that, however, you should know that business loans are quite different fromhome loans: in mostcases you will need at least $50,000or moreof your own capital before the bank will finance the rest. Typically, what you will need overall is somewhere between 30-50% of the total investment
  Good franchisors are committed to your success: They are no morethan a phone call away from the day you sign your agreement to the day you sell the business or turn it over to someone else.