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Why Franchise?
Franchising' primary purpose
is risk minimization. Numerous studies have shown the success rate
of new (non-franchise) business startups concludes the same.
Starting up a new business is very risky and show that over 90% fail
within three years. A recent Gallup Poll of franchisees found
that over 94% considered themselves successful and that over 75%
would buy their franchise again if they had it to do over.
Another
reason why it is prudent to buy a franchise is that a franchise
investment can be thoroughly researched before any significant
expenditures are made. With a new business startup (non-franchise)
you are always operating in the dark. No matter how much research
you do it is very difficult to get a handle on so many aspects of
the new business. With a franchise the franchiser is a wealth of
information about the business from how to prepare a pro forma to
the best personality traits for the business. But the most important
information comes from the existing franchisees.
source:
franinfo.com |