What is a Franchise?

A franchise is a license that a company (the franchisor) grants to a franchisee (you, the investor) to use the company’s brand name and its proven systems and procedures. Often the more franchisees, the more valuable the brand name becomes, hence the more valuable each franchisee’s business becomes.

Every franchisee operates his/her business within the franchisor’s quality standards so that customers experience consistency no matter where they buy the franchisee’s products or services. This is the strength of a brand name – the customer feels secure when making a purchase.

The most important thing to understand about buying a franchise is this: there is no automatic relation between what it costs to buy a franchise and how much money you will make.

When you buy an existing business, the higher the gross sales of the business, the more you typically have to pay for it. With a franchise, you are purchasing the blueprint to build Your Own business, and the cost of starting the business has nothing to do with the end result or the income potential.

There are many franchises with total startup costs of $30,000 and under that have the potential to provide you with an excellent income and the opportunity to build real capital. The advantage of a franchise is that you will know all the costs of getting started BEFORE you make your decision to invest in the business. This Reduces Your Risk and Increases the Safety of Your Investment.

Franchises are surprisingly affordable investments. Total investment in most franchises is between $25,000 and $250,000 and in many cases financing is available.


❯ Experience

❯ Brand Recognition

❯ Speed and Efficiency

❯ Friendship

❯ Support

❯ Advertising

❯ Simplicity

Franchising is a marketing strategy to get a disproportionately large share of the market. It is estimated that about 12% of all businesses in North America are franchised, but 43% of all North American sales – more than four times their share of the dollars! There is a reason why franchisees get more than their fair share of the market: In general, Franchisors offer you:


Franchises already have units operating successfully. This means that you can avoid expensive start-up mistakes.
Training: You’ll be taught what you need to know to start and to operate the business.


You will have the advantage of ongoing managerial, marketing, sales support and research and development to keep up with changing times and market conditions.


Brand names bring more customers into the business and provide a competitive advantage that independent units can never afford.


Professionally prepared and well tested advertising can give you a huge advantage in a competitive market. Co-operative advertising programs with the company and other franchisees can provide national exposure at a more affordable price.
Site Selection: You will receive advice in selecting a site and arranging the interior for your most efficient usage.


The franchisor will save you time in starting up so that you can begin working with customers and clients immediately instead of trying to work out unforeseen problems.


Franchisors try to keep your business as simple as possible so that you can concentrate on the activities that will make you the most money.


Because franchises often tend to attract certain types of investors with similar personalities and styles of doing business, you will find many like-minded people in the group. You will be able to make new contacts that could develop into friendships that may last a lifetime.


There is more to franchising than hamburgers or muffins! There are over 90 categories of franchise businesses with over 5,000 choices for you. In general, they fall into six main groups:


It is the most visible form of franchising, so many people think this is their ONLY CHOICE. Costs can range from under $100,000 to $2,500,000 per unit.


These can include transmission shops, quick lubrications and filter changes, auto glass repair, vinyl and leather repair, paint and dent repair, chip repair, tire repair, etc. Costs range from $25,000 to $250,000.


These services include tutoring, play lands, computer training, and educational entertainment. Costs commonly range from $25,000 to $200,000.


Like business services, most of the franchises in this sector can be home based or need only a small office. They provide services such as carpet and upholstery cleaning, services for the elderly, garden, tree and lawn care, etc. Costs will be between $20,000 and $150,000.


This category is often the favorite of people who want a regular 40-hour work week or LESS. Choices include recruiting temporary help, employment agencies, printing support services, sales training, management consulting services, commercial cleaning and maintenance services, and many more. Because there is usually no store or inventory, costs can range from $25,000 to $200,000.


Many stores we see in shopping malls are franchises. Health care stores, apparel, electronics, picture framing, furniture stores, to name just a few of the many choices. Because a store usually needs to be remodeled and inventory purchased, the cost can range from $75,000 to $250,000.


Sports and tourism, hotel, motel facilities, medical and cosmetic services, leisure and entertainment, and many, many more.

Here is just a partial list of franchises that function within the above groups:

• Automotive repair and service
• Computer repair and service
• Business to business
• Educational services
• Hotels/Motels
• Signs and Advertisements
• Printing
• Photo products and service
• Packaging and Shipping
• Water filtration/purification
• House/apartment repair and maintenance


• Commercial building cleaning and maintenance
• Laundry/Dry Cleaning
• Home repair services
• Healthy Eats
• Making and selling fresh juices and fruit/vegetable drinks
• Small scale production and sale of food products:
  – Bread and Pastries
  – Ice Cream
  – Sweets and Candies

• Restaurants
• Cafes 
• Sport Clubs
• Beauty/Cosmetic
• Salons
• Tanning salons
• Health/Fitness
• Senior Care
• Children Care
• Retail sale of home products
• Interior and home decorations
• Veterinary services and products

As a general rule, there is practically no business sector that does not offer franchising. With this abundance of selection, your Franchise Network International Consultant can explain the pros and cons of each type of franchise and help you to identify those that will fulfill your needs.


Am I willing to take on the responsibilities of managing my own company? While franchisors provide training and ongoing support, franchisees must manage their own businesses. This can mean long hours and hard work. And you must be willing to perform a broad range of tasks depending on the type of franchise you select.

Will I enjoy the franchise? Instead of just looking through lists of franchises, first determine your business preferences and interests. Then find the franchise that meets your criteria. Only then do you commit your money and energy to the franchise.

Am I willing to follow the franchisor’s system? You are investing in a franchise to learn the business, and you are promising your customers that they can expect the same high quality standards in your business that they will receive from every other unit of that system. Are you willing to follow the procedures? If not, do not invest in a system you will not use – consider starting an independent business instead.

Am I good at interacting with people? Your success depends on your ability to get along well with the franchisor, other franchisees, customers, and employees. Be sure you will enjoy and be good at this!

Can I afford the franchise? Thanks to disclosure regulations in the United States, you will have a good idea of the start-up costs. You will also need enough money to run the business and cover your living expenses until it can bring you a profit. Experienced franchisees can give you a good estimate of how long that may take. Plan conservatively.

Do I have family support? Starting your own business, franchise or not, is a family decision. Family members must understand that you will have demands on your time and that they will need to be supportive of your decision.

Franchise Network International CAN HELP YOU!

Franchise Network International is a member of the Franchise Network Group, Franchise Network International for short. Franchise Network International is one of the largest franchise consulting companies in the United States and combines more than 50 offices in North America, Canada, Mexico, Malaysia, and Russia.

Franchise Network International is a team of multi-lingual and multi-cultural business development experts with over 20 years of experience in assisting US and Latin America companies to establish successful commercial ventures. These experts will help you learn about your many choices available and how to select the right business for YOU.

We are paid by franchise companies who are searching for just the right people to enhance their type of business. The cost of a franchise will not change whether you use our services or not….so LET US HELP!