Franchises Tops $2 Trillion
Ken Hollowell, Founder, President/CEO of
Profran Consultants is one of the nations leading franchise specialists. Ken also aids business owners in paying for their enterprises thru
private placement offerings. never before in the history of marketing has a technique been more successful for business owners to grow than in franchising. According to the U.S. Department of Commerce, franchising has a failure rate of only 3.7 %.
A survey was conducted with the help of the global Franchise organisation to its franchisor membership and one of the questions that was asked to existing franchisees was'Would you buy your franchise if you had it to do over again?' The answer was positive from 93 percent of the owners. This attests the success of franchising in the lives of franchise owners.
what is franchising?
To define franchising in one word would be'marketing'. Franchising is an awfully sophisticated method of marketing a service or product that just happened to be federally regulated in the US and many foreign countries. Though franchising as a methodology of promoting can be dated back thousands of years ago, modern day franchising had its origin around 1850 when singer producing Company began offering distribution agreements to people to represent their product. Franchising has come a long way since then.
around the 1900's, the oil and gas industries along with the automotive and bottling industries, used'trademark' franchising exclusively. It wasn't until October twenty-one, 1979 the federal government implemented FTC Rule 436 which needs franchisors to obey various rules and guidelines in the offering of a franchise. This rule is still needed to this day.
What is a Franchise? A franchise succinctly is an'agreement'. The true value of any franchise will depend upon the agreement itself. It is very important that the agreement be marketable too!
Some of the things that need careful consideration are :
The initial franchise fee
The continuing fees ( royalties )
The T&Cs of the agreement
The territory
The coaching provided
The support of the franchisor
Who is considered a Franchisor? The'Marks', tradename, service marks, or trademark
Remuneration of $500 or more inside a period of time of six months
FTC Rule 436 requires that the franchisor comply with several fundamental things.
The development of a franchising is a continuious process while you are offering franchises. Some of the items that you are going to need are like this :
corporate Structure
verified Financial Statements
Uniform Franchise Offering Circular
Manuals ( Development & Operations )
Franchisee coaching Program
Franchisee Support
Registration in Regulatory States
Profile of who your franchisees will be
marketing Procedures
Ken Hollowell is available to discuss your franchise needs and requirements. Call 407-363-3545 or
e-mail.
