Tom’s Franchise Information Blog

Franchising is one of America’s leading industries, with annual sales nearing one trillion dollars. It also represents about 40% of all retail sales in the United States today. Franchising is not a business, per se, but rather a way of conducting business. If you have a business and think it may be a candidate for franchising, ask yourself these questions:

Do you have a successful business?

Is there a “system” to the business that is replicable – or is it you?

Do you want to expand your business?

Are you able and willing to manage and work through others?

Are you willing to share information about your business with others?

If you answered “yes” to each of these questions, you may be a candidate to franchise your business. While the reasons to franchise any particular business may be different for each person or organization, a common thread is the opportunity to expand your business brand and generate royalty revenue from each additional location.

For example, if you opened franchised business location, and it did $500,000 a year in sales with a 5% royalty rate, this location would generate $25,000 in additional revenues for your company – not including fees for the sale of the franchise. If you opened 25 franchised locations, your ongoing revenues would exceed $625,000 per year as a small franchisor. You might also gain certain economies of scale when dealing with your suppliers.

Franchising is regulated by certain states and by the Federal Trade Commission. The advantages for you or your business might be worth exploring as you look for ways to grow your business in today’s competitive climate.

By Thomas R. Brule

Thomas R. Brule

e-mail: BruleT@gmail.com

phone: (216) 789-4229

URL: http://www.BruleLaw.com