For would-be entrepreneurs, franchises offer built-in benefits, such as brand-name recognition and proven formulas upon which to build success. That’s not to say that plunking down a chunk of money will buy you a thriving business: Owning and operating a franchise requires, like any business, an investment of time, as well as the will to succeed.
The downturn in the economy has fueled an interest in franchise ownership, said Brian Miller, president and chief operating officer of The Entrepreneur Source,which offers franchise and business ownership coaching. “The kind of jobs that build long-term wealth and equity have gone away for many, and a lot of people are looking to take control of their own destiny. Franchising is a residual benefit of that.”
The number of franchise establishments in the U.S. is projected to increase by 1.9 percent in 2012 to 749,499, according to the International Franchise Association. That’s not as high as the 770,835 franchises that were around in 2007, but after declining for the past four years, franchise ownership is looking up.
"Our forecast for modest growth is good news for the overall economy, given franchising supports 12 percent of the U.S. private sector workforce," says Steve Caldeira, IFA president and CEO.
To anyone thinking of buying a franchise, Joel Libava, author of “Become a Franchise Owner,”offers this tip: “Spend a day with the owner of a franchise you are interested in,” he said. “Find out what they really do, and ask about the training program.It’s the least you can do before you commit many thousands of dollars to a business.”
Still think you’re cut out for the franchise world? Then click through to learn about the Most Promising Franchise Opportunities.
By Patricia Orsini
Posted Feb 24 2012
Source for startup costs: International Franchise Association. Note, in most cases, startup costs do not include build-out costs and equipment.