City Kitty Franchise

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The Advantages of Owning and Operating a Franchise

Franchising, as an industry first came into its own during the 1930s and 1940s when several hotels and gas stations decided to begin offering new dealers a comprehensive system of operational and marketing strategies. Since that time the franchising industry has become a national power in America's economy and a blessing for risk-averse entrepreneurs.

Why Franchising Is a Wise Choice

Franchising is growing rapidly as a business model because franchising works. It allows aspiring business owners to pursue their dreams in an industry they love while reducing much of the guesswork that usually accompanies a new business start-up. A franchise provides a proven system; a business model forged from trial and error. Today, franchising is a major force in almost every industry imaginable, accounting for a disproportionate share of retail sales throughout the US.

Franchisors provide their franchisees with benefits someone would not be able to get starting a business on their own. The most obvious is a proven business model with an established product or service, along with built-in name recognition. You also receive the necessary start-up assistance and training to avoid mistakes that other new businesses would encounter. In addition, you receive technical, operational, and managerial assistance unavailable to independent businesses.

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Statistics on Franchising

Here are some interesting statistics gathered from the website of the International Franchise Association on franchising:
  • The franchising industry employs over 18 million people in the US.
  • There are believed to be more than 750,000 franchise businesses in the US.
  • It is estimated that franchise businesses were responsible for over $1.5 trillion in economic
  • According to statistics from the US Department of Commerce, less than 5% of franchise outlets fail annually.
  • While franchises only account for 8% of all service business, they claim over 40% of all service-related revenue.
  • If current trends are any indicator, the growth of the franchise industry shows no signs of letting up: more than 300 different types of industries and businesses are franchising, and a new franchise opens every 8 minutes, accounting for 35% of all retail goods and services sold.
Franchising has become the clear choice for entrepreneurs who acknowledge their need for guidance and who value a long-term plan for business success.