What is the Franchise Business?
The franchise business is basically a licensing system by which the owner (licensor or franchisor) of a product or service licenses others to market his product or service (franchisees) within a defined territory following the guidelines established by the licensor.
There is virtually no product or service that is not available to the consumer through a franchise business. Many of the finest brand names we know are sold through franchise outlets. In addition to being a widely diversified business, it has been part of the business scene in this country for over 100 years.
Operations which are franchised provide training, start-up assistance, name recognition, purchasing power, proven sales & marketing programs, demographic & site selection, tested operating systems, and ongoing support. These may combine to form a “safety net” for individuals entering the world of franchise ownership.
What is Involved in Purchasing a Franchise?
Business buyers are required to provide a 30% down payment of the total purchase price of the franchise if using SBA financing. Most business or personal service franchise investment totals are under $200,000 and 1/3 of all franchises are under $150,000.
Prospective buyers often finance their business purchase utilizing funds from an SBA Backed Loan, Home Equity Line of Credit or 401(k).
For Further Information:
If you are considering purchasing a franchise, you may want to contact BusinessOwnerSpace.com partner FranNet. FranNet is the largest franchise consulting group in North America and provides a no-cost consulting service to clients. For more information, visit www.frannet.com.