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Regis Franchise Logo png 

SO, YOU WANT TO BUY A FRANCHISE?

BEFORE YOU GET STARTED:
SOME FACTS FROM THE INTERNATIONAL FRANCHISE ASSOCIATION


Economy and Opportunity

  • Franchising contributes an estimated $1.5 trillion to the economy – nearly 10 percent of the private-sector economy.
  • One in every 12 businesses in the United States is a member of a franchised network.
  • There are more than 900,000 franchised businesses in the United States.
  • Franchised businesses provide more than 11 million jobs in America.
  • Franchised businesses cover more than 75 industries located in 100 countries around the world.
  • Franchise businesses cover industries including hair care, insurance, children’s services, advertising, accounting, convenience stores, educational services, security, business brokers, weight control, cosmetics, retail, jewelry, travel, environmental services, quick service restaurants and hotels and motels.
  • Most people come into contact with a franchised business every day.


Defining a Good Franchise Opportunity

  • The International Franchise Association (IFA), a 50-year old organization devoted to enhancing and safeguarding the business environment for franchisors and franchisees worldwide, recommends the following when considering franchising:
    • Demand: Is there a demand for the franchisor’s product or services in your community? Is it seasonal or does it generate repeat business? Will there be continuing demand for the product or services in the future, is it temporary or a fad?
    • Competition: What is the level of competition, nationally and in your community? How many company-owned outlets does the franchisor have in your area? How many competing companies sell the same or similar products and services?
    • Location: Is it located in the inner city? What are the demographics? Is this particular type of business needed in your community?
    • Name Recognition: Is the company’s name widely recognized? How long has the franchisor been in operation? Does the company have a good reputation?
    • Training & Support: What backgrounds do the current franchise owners have? Do they have prior technical backgrounds or special training that helps them succeed? Do you have a similar background?
       
  • The IFA also recommends talking and consulting with other franchisees in the network, checking company history, and understanding the Disclosure Document that regulates the franchise offer.