Looking for the best business opportunities in the US?
What is a Franchise?
We have the privilege to work with many international entrepreneurs who are looking for great business opportunities in the United States. You may be an experienced business owner who has had great success opening and running a business. Maybe you have worked within the corporate environment for many years and are looking for a chance to own your own business.
Regardless of your background or circumstance, you may be asking the following; “why should I look at a franchise?” “Why not start my own business?” Do I really need a franchise system? “What are the benefits of being a franchisee?”
Throughout the next several weeks we will discuss the various elements of franchising in the United States and the benefits of investing in a franchise system vs. starting a business from scratch. In this blog. I will focus on a simple question, What is a Franchise? It’s a simple question, right?
So, let’s start with the basics. What is a franchise? Legally speaking, a franchise is an agreement or license between two independent parties – – Franchisor and Franchisee.
Within this agreement the licensor (Franchisor) will provide the following to the Franchisee: 1) The right to market a product or services using the trademark or trade name of the brand (Franchisor), 2) Use of the operating methods and processes of the Franchisor, 3) Payment from Franchisee to Franchisor for the rights to use their name, systems and processes.
In return, the Franchisor has the obligation to provide support to the Franchisee for the term of the agreement.
Now that you know how a Franchise is defined, why it this important in the context of your search for the right business?
Recently, The United States Chamber of Commerce reported that 86% of franchises opened within the last five years were still under the same ownership and 97% of them were still open for business.That’s an amazing statistic!
While we all know that every business venture has some element of risk these numbers show the strength of the franchise industry and the systems and processes they implement.
So what contributes to the success that such a large number of franchise owners are experiencing with their businesses?
In my next blog, I will dive into this question in more detail and discuss how the franchise industryhelps prospective franchisees make good business decisions before, during and after their businesses are open.