There are approximately 800,000 franchised businesses in the United States generating around $8 billion annually and employing over 9 million people. Franchising requires a franchisor to grant the use of its brand name and systems to a franchisee via a franchise agreement, which specifies initial fees and startup costs that can range from $15,000 to several million dollars. Franchisors are able to leverage their size to negotiate better real estate deals, supplies, and marketing support for franchisees, but the agreements may be too restrictive and franchisors risk damage to their reputation if franchisees fail.

1. Franchising
A Quick Way to the Top

2. Franchising Facts
There are an estimated 800,000 franchised business in
operation in the U.S. with a gross value of around $8
Billon
This provides over 9 million jobs in the work-force
The sectors most susceptible to franchises include:
Fast-food, retail food, personal services such as nail
salons, and business services such as payroll or
insurance companies.

3. Franchising Agreements
A franchising agreement can not take place
with out a franchisor and a franchisee.
A franchise agreement contains the initial
purchase fee as well as start-up costs.
Start-up costs can range from as low as
$15,000 to as high as a couple million.

4. Opportunities for Expansion
Franchisors can typically navigate better deals on real estate, supplies and
marketing deals due to their financial strength
Benefit of name recognition
Management system has already been established
Franchisors provide a wide array of support to the franchisee in the form of
financial assistance, business training and supplies and marketing tools.

5. Franchising Downfalls
To restrictive of an agreement for franchisee
Franchisor relinquishes control over every aspect of
business
When first franchising out the company may lose
money
The franchisor risks their reputation if a franchisor fails
to keep up with the demand of running a business