What is Franchising?
The evolution of franchising can be traced back to the 1850s, but franchising as we understand it today started in the 1950s and has reached an almost mythical stature over the last fifty years. A new franchise opens every 8 minutes of every business day and dives over 40% of all retail business. Annually, franchising accounts for over $800 Billon is sales, over $1 Trillion of total franchise sales and employs over 8 Million people. Franchises are the most successful businesses on the planet with over a 95% success rate and at the same time creating over 170,000 new jobs per year.
Who Buys Franchises?
The majority of franchise buyers are success-oriented, educated, family-minded, corporate people. As corporations switched their focus from employees to investors, they realized how expensive their senior level employees had become; they began down-sizing their mid and upper level managers to save money and improve investor’s stakes in their companies. This growing number of outstanding corporate managers is now the driving force behind franchising and represents a constant stream of qualified franchise buyers.
The Franchise Buyer
A 25 year study conducted by the International Franchise Association pinpointed the “Typical Franchise Buyers will come from all walks of life and educational and economic backgrounds, but some of the typical characteristics are:
- Between 35 and 55 years old
- Corporate Management background
- Income average of $65 to 150K
- Net Worth of $250 to $600K
- Majority have IRA/401K retirement plans
- Men, Couples, Women in that order
- Most have not owned a business
- Want to build a business that will allow them to retire
- Looking for ongoing marketing, training and support
There are a few thousand franchises available we will work to find the “perfect franchise” for each of our clients.