Is Franchising for You?
Visit any town or city and you will find franchised businesses. One of the reasons that many franchises have been successful is that, in franchising, a business synergy is created. Franchisees brought together under one trademark can achieve things that as individual business people they could not do. Compared to independent start-ups, franchised enterprises offer a remarkably higher probability for success.
Collective buying power, rapid market penetration, proven operational systems, training and support, are just a few of the clear advantages of franchising versus other business methods. The belief that large amounts of capital are always required to buy a franchise is not true, and it is important to understand the capital risk versus the rate of possible return so you can see if a franchise matches your needs.
The fastest growing franchises are those offering a complete business format. In these cases, the developer for the business concept (the franchisor) grants to an individual (the franchisee) the use of an established trademark, access to system-wide educational programs, proven operating procedures, group purchasing power and the goodwill and know-how of an experienced enterprise. Each franchisee is trained in the operations of the business and receive ongoing management and operational support. This is the VR model of franchising.
It is important to understand that VR is not your average franchise. Rather than operating with the philosophy that more is always better, VR prides itself on its mandate to create a boutique firm atmosphere for its intermediary’s rather than a mass produced franchise factory. Acknowledging the skill set required to assist entrepreneurs buy and exit from businesses is quite different from those needed to operate a fast food restaurant or retail business, VR would rather grant a franchise to the right individual than sell one to someone because they have the available funds. For this reason VR does not use franchise sales people, and prospects work directly with one of the two principles of VR through out the franchise process.
Before buying a franchise, 10 important questions need to be carefully and thoughtfully answered:
1) Are you willing and able to take on the responsibilities of managing your own business?
2) Will you enjoy the franchise?
3) Are you willing to completely follow the franchise system?
4) Do you have a history of success in dealing and interacting with people?
5) Can you afford the franchise?
6) Have you carefully studied the legal documents?
7) Does the franchise you are considering have a track record of success?
8) Are the franchisees generally happy and successful?
9) Do you like the franchisor’s staff – those people with whom you will be working?
10) Do you have a support system?
Franchising allows you to be in business for yourself, but not by yourself.
Impact of Franchising in America:
What Occurs in Franchise Businesses…
– The number of establishments operated by franchised businesses…767,483
– The number of jobs in franchised businesses…9,797,117
– The payroll provided by franchised businesses…$229.1 billion
– The economic output of franchised businesses…$624.6 billion
What Occurs Because of Franchise Businesses…
– The number of jobs created because of franchised businesses…18,121,595
(13.7% of the private-sector employment in the United States)
– The payroll provided because of franchise businesses…$506.6 billion
(11.1% of private-sector payroll in the United States)
– The total economic output because of franchised businesses…$1.53 trillion
(9.5% of the private-sector economy in the United States)
Combine the power of franchising, with the leader in small and middle market business sales and you will feel secure about your future with VR!