Franchising Information

◄-- Back

Information on Purchasing a Franchise
Franchisor, Franchisee and Franchise Resources

Next --►

Permission is granted to Copy this Information for your own website provided the page is accompanied by the Resource Box at the end, and all links remain active. (turn off all pop-up killers - opens in a new window)

Information on Purchasing a Franchise
November 7, 2003

Why Should You Purchase a Franchise? -- Minimal risk.

When you purchase a Franchise, you're buying a proven track record. The risks involved in starting your own business with your own Capital are significantly minimized.

New Non-Franchise Business vs Franchise

The success rate of new (non-Franchise) business start-up vs a Franchise is very risky. Studies show that more than 90% of personally owned and operated businesses will fail within 3 years. The main reason for such a high failure rate is because owners are going through the learning process of operating a specific type of business. The marketplace has little or no tolerance for inexperience. Ultimately, the larger corporations eat you alive and you lose your money, credit, your reputation, home and car. In many cases, even your family. It's a horrible experience that so many wonderfully gifted entrepreneurs experience every year in the U.S. and it's so unnecessary. Unless you're considerably experienced in a specific type of business, it's wisest not to venture into the waters because you'll probably fail.

On the other hand, studies have shown that Franchise New Business start-ups rarely fail - less than 2% failure rate. When they do it's usually because the Franchisee did not adhere to the Franchisers Systems. Franchising is as close as you can come in todays marketplace to a guaranteed success.

The Learning Curve Process

Human endeavors involve a learning process and this process requires going through a series of trials and errors.

Knowledge is gained through these trial and errors until eventually it becomes a trial and success. This is called the learning curve.

The Franchiser has already gone through the trial and error process and has learned how to be successful in a specific type of business. All that has been learned by going through the "curve" is passed on to the Franchisee, which is why you buy a Franchise. You're minimizing personal risk and maximizing personal success.

Try BEFORE You Buy

Another very important reason for purchasing a Franchise is because you can research it thoroughly before making any major investments. Plus, you can get answers key information from existing Franchises. "Were you properly trained? What is your annual return on investment? How long did it take before you broke even?" and, "If you had it to do over again, Would You?" You can essentially Try It Before You Buy It, ensuring it's the right choice for you.

Growth Potential

Another very good reason for buying a Franchise is its growth potential. The Franchisees provide expansion capital and there are very few restraints on growth. As a Franchise expands, its' name begins to appear everywhere, lending popularity and credibility. Most people associate size with success. So the bigger the Franchise, the more successful it must be, and if it's more successful, more Franchises (units) will be sold, and more units means more advertising, and so on, until you all but eliminate the competition. This creates a synergy whereby success begets success. The larger the Franchise, the more purchasing power it has, enabling it to make purchases at large discounts, passing this benefit down to its' Franchisees. It's a win win situation and the synergy continues to grow.

The above Information is provided to you as a Free Service by Debbie - AKA AlbertaRose. For More Information on Business Opportunities or Ideas, Starting a Business or Franchise visit:

Printable Version (turn off all pop-up killers - page opens in a new window)

Valid HTML 4.01 Transitional

AlbertaRose is Powered by:
 Hosting since 2000.