The concept
of "franchising" or licensing operators originated decades ago and has
become very popular ever since. It has been said that 1 out of 12 businesses in
the states is a franchise.
Franchising is so
popular because it allows entrepreneur to own and operate their own business,
profit from the use of an established brand name, and benefit from a proven system
of operations. Franchise companies also provide guidance and consultation on personnel,
training, audits and controls, and share in the success of an established marketing
plan. An ice cream franchise or licensing an
ice cream brand identity and support can give you access to a successful proven
business system. Important Franchise Facts:
- Franchise operations in the United States account for
42% of all retails sales.
- Retail sales for franchises
are expected to reach $1 Trillion in Year 2000.
- According
to the US Department of Commerce from 1971 to 1987, less than 5% of the franchise
businesses were closed each year.
- Arthur Anderson
& Company found in 1991, almost 86% of all franchises opened in the previous
five years was still under the same ownership and 97% were still in business.
- According to statistics from the US Small Business
Administration from 1978 to 1988, 62% of all non-franchised businesses closed
within the first six years due to failure, bankruptcy, retirement, or other reasons.
- More than 8.5 million Americans are employed
by franchised businesses.
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