I was speaking with some friends and family this weekend about franchising and some of the opportunities that are available in the market today. I was struck by the reaction of the people in the room. They almost immediately dismissed the idea of looking at a franchise because they thought it was out of their reach financially. When people think about franchises, they think about the large empire brands like McDonald’s and Buffalo Wild Wings, where you need substantial assets to even have a conversation, if you could get them on the phone.
According to FRANdata.com, there have been 1,749 new franchise brands introduced to the US since 2012. These franchises represent 29 different industries and 188 business sectors. The next time you think about franchise opportunities know that it reaches far beyond McDonald’s, and in fact far beyond the restaurant and food industry. So, who are these new franchises and where did they come from?
Franchising has become rapidly accepted as a path to national expansion. 86% of the new brands introduced since 2012 are successful business owners who believe they can grow faster with the help of a team of franchisees who are responsible for their individual territories. That is what franchising is all about after all. It is a successful business owner who needs talented and dedicated people willing to believe in and grow his company.
According to the International Franchise Association (IFA), almost 4% of all small businesses in the U.S. are franchises. It is an industry that generates $2.1 trillion and employs 18 million Americans. Most people invest in a franchise because it is a proven business model that provides a greater assurance of success in a shorter period of time. Many of the clients I work with have already proven they can be successful at growing a business while working at their corporate job as a division manager or sales leader. A franchise offers the same type of structure while affording the franchisee a greater return on their time and investment.
The fact is that there are many franchise opportunities out there that will allow you to invest in your future without risking your entire life savings. To compile their list of top-rated franchises each year, Franchise Business Review surveys thousands of franchisees, from hundreds of leading franchise brands, to gauge franchisee satisfaction and performance. The Franchise Business Review provided a list of the Top 100 Low-Cost Franchises of 2020, where the cash required to invest ranged from a low of $5,000 to a high of $125,000, with most requiring less than $50,000 to get started. So, the next time you are thinking about venturing out on your own, remember there are opportunities out there for everyone brave enough to take a chance on themselves.
