What is a franchise? A franchise provides an individual the opportunity to use a tried and successful business system at his or her own chosen location. Franchising is simply the right granted (by the franchisor) to someone (the franchisee) to sell a company's goods or services in a specific area.

The reason for franchising is simple. Starting a business from scratch can be risky and time consuming. While the rewards can certainly be great, the failure rate is high. If you want the independence of running your own business and the ability to reap the rewards from your hard work. A franchise could be the answer for you.

Franchising provides an opportunity for success. It provides the opportunity for you to be in business for yourself, but not by yourself.

The Strategy

A franchise is a network of individual business owners who share a common business and marketing strategy. This includes a method of doing business which the franchisor has shown to be successful and which can be leveraged by new franchise owners. As the franchisor already has a proven method of doing business, new franchisees can be set up relatively quickly and efficiently.

The System

One of the biggest benefits of being part of a franchise is the ability to leverage the franchise system. This includes training on how to run your business as well as on-going support of that business. In taking advantage of a proven system, a business owner is able to concentrate his business efforts on activities that will generate the most money. Professionally prepared marketing materials and well-tested national advertising also provide huge advantages to business owners. Group buying power provides a cost advantage to businesses who are part of the system.

The Results

Franchises already have businesses up and running, meaning, they can help you can avoid expensive start-up mistakes. Being part of a group of like-minded business owners provides a network of support and ongoing resources for you. Predictable results based on your adherence of the system mean less risk of your invested capital. The trade off is that you will need to work within the franchisor's method of business and pay royalty fees for being part of the system.