Probably the most common question I am asked is “why should I buy a franchise instead of start my own business” many times. While franchising is not for everyone there are several facts that show just how strong a franchised business model can be. Here are a few of those facts.
A franchise is a proven business model that one is simply duplicating in a new market.
A report from the IFA noted that 86% of new franchises studied were still under the same ownership five years later. In contrast, the Small Business Administration reported 62% of all new businesses were dissolved within the first six years.
A recent Gallup Poll of 994 franchise owners found that 94% considered their franchise successful.
Annually, about 30,000 new franchises open with a survival rate close to 90%, according to government studies.
In addition to reduced risk, franchises offer a quicker start-up, lower start-up costs, and less ongoing expense, while still allowing you a home-based business, control of your business future, and the independence and satisfaction of owning your own business.
Financial assistance is more easily obtained for most franchises.
Franchises typically get better consideration than independent businesses in key real estate locations such as malls and shopping centers.