Franchising is the leading method of doing Business
CBC's Venture program indicated that close to 45% of all money spent in Canada was though franchises & franchising. The statistics is supported by the Canadian Franchise Association.
Across the border the US Department of Commerce reports that franchising:
- is approximately one trillion dollars a year.
- Increases about 8% per year
- Represents 15%-16% of US gross national product
- Employs 9 million people
- Accounts for over 40% of all retail sales
Is there any other reason that in both Canada and the US the franchising & franchisor's revenue is now used as an investment venue by pension funds, real estate, syndication, investment groups and private investors.
In the last 10 years alone total franchise sales have grown from 600 million to just under one trillion dollars a year.
If you want a proven method to help you increase growth, sales, profits, then you should consider franchising and its several advantages:
Capital - More potential capital is available to expand your franchise. Your franchises become investors in creating a network of independent businesses operating under the same proven system, thus allowing for quicker expansion.
Return on Investment – Because of this lower investment, return on investment will be significantly higher.
Risk Reduction – With no capital invested, risk is reduced substantially.
Trained & Motivated Management - Franchising reduces the need and difficulty of recruiting, training, compensating, and retaining a large competent staff to operate company - owned outlets. It eliminates day-to-day responsibility for direct management at each location. Franchising allows you to benefit from the high motivation level of the owner/manager franchisees.
Efficiency - Using the same tried and proven systems helps reduce the “start up” and operating challenges that a new entrepreneur may face. The efficiency is present in the duplication of the system and the utilization of the same supplier and advertising resources.
Reduced Role in Day-to-Day Operations – Your primary goals as a franchise is the franchiseers top line performance reducing the scope of in day-to-day management.
Involvement in day to day management
Rapid Expansion - A unique concept, a solid operating system and strong franchise management will allow your franchise to expand at a more rapid rate, should that be your choice.
Great Buying Power - Collective buying power is made possible in a network of franchises sharing operations, equipment, inventory, and other similarities, resulting in savings for each individual franchise.
Securing Locations - Most shopping centers, strip malls, and landlords in general are more receptive to leasing choice
Marketing Dominance - As a franchise system, you can capitalize on your current and future franchise presence in varying territories. You can utilize national and regional advertising to promote your entire system, thus making your franchise more competitive than a typical “locally owned” company.