What is franchising?

Franchising is a method of distributing products or services. At least two levels of people are involved in the franchise system: (1) the franchisor, who lends his trademark or trade name and a business system; and (2) the franchisee, who pays royalty and often an initial fee for the right to do business under the franchisor’s name and system. Technically, the contract binding the two parties is the “franchise,” but that term is often used to mean the actual business that the franchisee operates.

How big is franchising?

Franchising directly, or indirectly generates $1.53 trillion per year, and creates 18.1 million jobs. The business services sector of franchising, of which Best Coupon Books is a part, generates $119.8 billion per year and creates 1.3 million jobs*.

What are some of the advantages of franchise ownership

• Established operating systems
• Nationally known brand name
• Complete training programs
• Thorough and ongoing business support
• Protected territories
• Research and development of products and services
• Network of peer owners
• National marketing initiatives
• National buying power

Franchising allows you to be in business for yourself, but not by yourself. You can avoid many of the pitfalls of new business ownership if you follow the proven systems of a franchise concept.

How should I begin evaluating a franchise opportunity?

The first place to start is to evaluate the franchisor. You will be able to get a great deal of important information from their Uniform Franchise Offering Circular (UFOC). In this document, you will see a company’s financial statements, litigation history, and a list of the franchisors directors and officers with their business experience. Asking questions of current franchisees within the system is a necessary component of your due diligence process. You want to find out if they are satisfied or not, and why. They will let you know whether the support and training is valuable and comprehensive. They can give you insight into return on investment and break-even time frames that the franchisor, by law, cannot.

You can be on your way to a brighter future! Use our simple form for more information.

*International Franchise Association, 2003.