What You Need to Know About Franchises
Are you thinking about starting a business? Maybe you know you want to be your own boss, but you’re not sure what kind of business to start. Or you’ve got lots of energy and drive, but you’re not so strong on MBA-type business knowledge.
One option to consider is buying a franchise. If you’re not familiar with franchising, it’s a method of business where an entrepreneur buys into a system. You pay a franchise fee, as well as ongoing royalties, to the franchisor. In return, you become a franchisee and have the right to open your own franchise, following the systems and processes of the franchisor.
Franchising has been described as a way of being in business “for yourself, but not by yourself.” As a franchisee, you get the benefit of the franchisor’s proven methods of doing business, as well as training, ongoing assistance, and the branding benefit of the franchisor’s name. The support franchisors offer varies, but typically includes purchasing power, help finding and opening a location, marketing and advertising programs and more.
McDonald’s is perhaps the most famous franchise company, but there are hundreds of others that, while not as well known, can offer just as great an opportunity for success, financial profit and the thrill of being your own boss. If you’re curious about what the world of franchising has to offer, there are several places to start. The International Franchise Association (IFA), the preeminent organization for franchisors, has a website with lots of information and resources about franchising.
If you’re trying to decide among the myriad of franchise companies out there, you’ll want to visit the AllBusiness.com website. The annual AllBusiness AllStar Franchises ranking spotlights the top 300 franchise opportunities, ranked based on key business indicators such as growth, Web visibility, longevity, system size and affordability. You’ll find all the information you need to get started comparing franchise companies.
Of course, anyone who’s considering a business startup needs to be where you are—the SCORE website. One-on-one SCORE mentoring, either offline or online 24/7, can help you make smart decisions about business and franchise ownership.