Why Are Other People Opening Franchises? And Why Should I?
Since the mid 90’s the number of small businesses in the US has been growing - and fast! It makes sense why - it gives you an opportunity to do something more interesting, to have more flexibility, and to be your own boss. Beyond just small businesses in general, franchises have been seeing particularly strong growth in the post-recession period. Franchises have grown to represent more than 4% of all businesses in the US and account for nearly 50% of all retail sales. So with more than 900,000 franchise businesses in the US we were wondering if we were right about why people are opening franchises? Is it for the flexibility? For the career change? For the freedom of being your own boss? Or for some other reason all together?
Over the past eight months we’ve been running a quiz to try to match people with the best franchise for them. One of the questions we’ve asked everyone is why do they want to open a franchise. We went back to the data from April and May to try to figure out what is driving people to open franchises. In the end the data was pretty clear cut and there was only one winner. As we initially speculated some people open franchises because they want more flexibility, or they want a more satisfying career, but neither of those are the primary reason for most people. The number one factor is that most people want to open a franchise to make money. More than 50% of the quiz takers reported that money was their primary consideration when it came to opening a franchise.
This came as a little bit of a surprise to me.but at the end of the day it makes sense. Franchises might be a good opportunity for people to make a change in their lives, but at the end of the day they are a major investment. And as with all major investments you’re probably making it with the intention of making money. So if you are thinking of opening your own franchise to make more money, have more flexibility, or have a more fulfilling career you’re not alone.
Interested in opening your own business? Try out our quiz for yourself and find your perfect franchise opportunity today!
How buying a franchise is different from a start-up
History has shown that a struggling economy encourages entrepreneurship, which leads to a significant increase in new start-up businesses. But what if you are a hard-working professional with limited business knowledge and resources? You are motivated and more than willing to do the work, but you need a roadmap to guide your efforts. In that case, franchising may be a good option for you.
The American Dream is NOT Out of Reach!
In the definition of the American Dream by James Truslow Adams in 1931, "life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement" regardless of social class or circumstances of birth.
Franchise Disclosure Document for Dummies – Part 7
In Item 17 of the FDD, franchisors are required to provide summaries and cross-references for 23 key provisions in the franchise agreement. A careful franchise prospect will have the entire franchise agreement reviewed in-depth by an experienced franchise attorney, but the Item 17 disclosures can provide a quick guide to use in a preliminary analysis of the franchise opportunity.
