The concept of "franchising"
or licensing operators originated decades ago and has become very popular ever
since. It has been said that 1 out of 12 businesses in the states is a franchise.
Franchising is so popular because it allows entrepreneur
to own and operate their own business, profit from the use of an established brand
name, and benefit from a proven system of operations. Franchise companies also
provide guidance and consultation on personnel, training, audits and controls,
and share in the success of an established marketing plan. An
ice cream franchise or licensing an ice cream brand identity and support can give
you access to a successful proven business system. Important
Franchise Facts: - Franchise operations in the United
States account for 42% of all retails sales.
- Retail
sales for franchises are expected to reach $1 Trillion in Year 2000.
- According
to the US Department of Commerce from 1971 to 1987, less than 5% of the franchise
businesses were closed each year.
- Arthur Anderson
& Company found in 1991, almost 86% of all franchises opened in the previous
five years was still under the same ownership and 97% were still in business.
- According to statistics from the US Small Business
Administration from 1978 to 1988, 62% of all non-franchised businesses closed
within the first six years due to failure, bankruptcy, retirement, or other reasons.
- More than 8.5 million Americans are employed
by franchised businesses.
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