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The world of franchising can be a mysterious place, but it really doesn’t have to be.
These days, there is a huge amount of information available about virtually every franchise-related subject and most of it is just a click away.
With that in mind, here are seven more things you may not know about becoming a franchisee; from the brands that are currently sitting at the top, to the experience an entrepreneur requires to run one of these businesses.
1. Food is Still King
Every year, Franchise Direct names the Top 100 Global Franchises and every single year, food franchises dominate the top of the list.
Of course, when you think about it, this makes total sense; when you are looking for comfort food, you want a brand you know and trust. Most of the brands that are at the forefront of your mind (and soon to be on the tip of your tongue) are franchises.
This year, the top ten on Franchise Direct’s list included eight organizations that could be described as food franchises, one convenience store franchise and one hotel franchise.
Of course, just like with any business, running a food franchise requires hard work and intelligence in order for it to be a success. Nonetheless, there is little doubt that the brand recognition that the higher profile companies provide is of a huge benefit to those who invest.
2. No Experience Required
Did you know that there are quite a few organizations where you can become a franchisee without any prior industry knowledge?
It’s not just the obvious ones either, like vending machine companies and other low-cost franchise opportunities. For instance, the home services sector is on an upward curve right now and many of the organizations operating within this industry are crying out for enthusiastic franchisees who are willing to learn.
Believe it or not, even the fitness sector has several franchises that don’t require prior industry knowledge from an investor; you don’t have to be Arnold Schwarzenegger to be a fitness franchise owner, so you can say “Hasta la vista, baby” to that idea!
Very often, franchises are comfortable taking on franchisees without experience because they are confident in the training they are providing. They believe that after their learning processes are employed with a hardworking entrepreneur, that person will have the capabilities to run the business successfully, no matter what their background is in.
3. Not All About the Money
When a person decides it is time for a career change, there is a list of contributing factors and one of the items that is frequently cited on these lists is that the person wants to move into an area where they are making a difference.
These people are looking to make a real change in their customers' lives.
Education and more recently, edutainment, franchises have been offering these people with an option to join companies with existing plans, that make a real positive impact.
Of course, many of these operations have large revenue streams as well, but they have also proved to be popular with investors looking to create a sincere societal change.
4. Most Franchises Require Royalties
Like any big decision in life, there are some advantages and some disadvantages to purchasing a franchise.
One of the disadvantages for running a franchise is that, except in rare circumstances, you will have to pay royalty fees to the franchisor.
This is a fee for the use of the franchiser's trademarks and many other elements of their pre-existing business.
It is an understandable cost, as the franchisee is using processes that are often already proven to work.
5. Fitness Money
Fitness companies have a tendency to be among the highest ranked franchises in Inc.’s 5000, which for those of you who aren’t familiar, is a list of the fastest-growing, privately held companies in the U.S.
People are becoming more self-aware about their overall health. The brand familiarity that comes with a gym or fitness franchise means that it’s often the first answer for folks who are wondering where to turn.
The fact that fast food franchises are also incredibly popular, would suggest we all turn back every now and again too!
6. The Road More Traveled
Making the leap to becoming your own boss can be a costly experience, but there are options to make that move that little bit cheaper.
Of course, if you are choosing to go into business on your own without the help of a franchise, you will have to carve out your own path and this will come win learning curves.
However, if the road of the franchisee is more your kind of thing, then there are plenty of low-cost options available and one of the best things about many of these options is that they’ve already been proven to work by others.
7. Selling Can Be Easier
One thing many business people simply don’t know is that when a franchisee decides they would like to sell their business, there are many franchisers that help their franchisee find a new buyer.
Of course, there is often a fee involved in this process, but that doesn’t negate the fact that the seller gets to work alongside experts to help them resell their franchise.
This is a nice added perk, particularly for someone who wants help every step of the way - from inception to the big sell.
These are just seven facts about franchising that you may not know. It’s an ever-changing world, with many great opportunities that can be taken advantage of.
For more information, check out the Franchise Direct resource center.