WHY FRANCHISING

Franchise 101 Franchising is a method of distributing products or services. In a franchise agreement, the franchisor licenses franchisees to use trademarks, service marks, logos or advertising to identify its franchisees’ business. The franchisee pays an initial fee and royalties thereafter to do business under the franchisor’s name and system.1

Franchise Strength The franchise sector has been expanding at a faster pace than the overall business sector in recent years. According to the International Franchise Association (IFA), from 2001 to 2005 the output of franchised businesses grew by more than 41 percent, while the economic output of all businesses grew by only 26 percent. The overall economic output of franchise businesses is expected to rise nearly three percent in 2010. By combining business ownership with a well-known brand name, experience and an established franchisor, franchisees and franchisors form a unique, mutually beneficial business relationship.2

Benefits of Franchising Owning a franchise offers most of the benefits of traditional business ownership with far less risk and provides additional aspects to assist with success. By buying into a franchise, you have the immediate backing of a recognized brand with a proven track record and business system. A franchise system also generally offers:

• Training and support
• Volume purchasing benefits
• Start-up assistance
• Access to marketing and advertising programs
• Use of the franchisor’s business system3

Request Info | Next >>