The Success of Franchising

How Successful is Franchising?

Never previously in the history of promoting has a method been more successful for business owners to grow than in franchising. According to the U.S. Department of Commerce, franchising has a rate of failure of only 3.7 %.
Franchising is anticipated to reach $2 trillion by 2010, according to the Fed Trade Commission.

A survey was conducted with help from the global Franchise association to its franchisor membership and one of the questions that was asked to existing franchisees was'Would you purchase your franchise if you had it to do over again?' The answer was positive from 93 % of the owners.

What is franchising?

Franchising is a very sophisticated technique of promoting a service that just seemed to be federally regulated in the united states and many foreign nations. Though franchising as a strategy of marketing can be dated back thousands of years gone, present day franchising had its origin around 1850 when vocalist producing Company started offering distribution agreements to people to represent their product. Franchising has come a long way since that time.
Round the 1900's, the oil and gas industries together with the car and bottling industries, used'trademark' franchising totally. By the mid 1930's countless firms used'business format' franchising as their strategy of expansion. But by the 1950's with businesses like McDonalds, franchising came into flower. It was not until October 21, 1979 that the government enacted FTC Rule 436 which requires franchisors to comply with various regulations and suggestions in the offering of a franchise. This rule is still needed to this day.

What is a Franchise?

A franchise in brief is an'agreement'. The true cost of any franchise will rely on the contract itself. It is very important the agreement be marketable too!


the continual costs ( royalties )
The terms of the accord
The support of the franchisor
Who is Considered a Franchisor?


The'Marks', tradename, service marks, or trademark
important controls or assistance
Remuneration of $500 or more within a period of time of 6 months

What the FTC Rule requires
They're :




The franchisor is taboo from giving'earning claims' or'projections' of earnings unless certain necessities are met by the franchisor.
What do you need in developing a franchise?

Some of the things that you're going to need are :
company Structure
federal Trade Mark Registration
verified finance Statements
Uniform Franchise Offering Circular
Promotional & selling Materials ( may be a web site )
Manuals ( Development & Operations )
Franchisee training Program
Franchisee Support
Registration in Regulatory States
promoting Procedures

Profran advisors, Inc.

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