Bright outlook for every Franchise
The outlook for your franchise is really looking bright.
The International Franchise Association (IFA) reports that the number of franchise businesses is expected to grow 1.7% this year, and franchises are also expected to add 278,000 direct jobs to the economy. That’s an increase of 3.1%.
It stands to reason then, that 43% of the attendees to the recent International Franchise Expo (IFE) in New York say they plan to invest at least $100,000 in a franchise. They must believe — and it makes sense — that franchising is looking like a more proven and wiser route to profits. Plus, because it’s a great strategy for entrepreneurs, it’s the perfect time to involve yourself.
Cloudy Weather for Some
Even with this bright outlook, a 2015 survey of U.S. franchisees by Franchise Grade found that just 34% say they’re satisfied with their business. More than half of the respondents claimed that they don’t make a good profit or a decent living from their business. With that type of cloudy forecast for some, 83% wouldn’t recommend buying into their business to friends and family.
One of the main reasons for these types of responses is that some individuals buy into franchises without the information and background they should have. This includes a clear understanding of the risks. Prospective franchisees should understand the full picture of franchising, rather than just what can be found on industry brochures. The IFA contends that franchisee satisfaction is critical to the well-bring of the industry.
So how can prospective franchisees make informed decisions?
One part of the solution is to engage a seasoned business consultant for practical and unbiased guidance and advice. A business broker like Andrew Rogerson in Sacramento will make sure you tackle first things first, such as extremely thorough due diligence.
Responses to the Franchise Grade survey indicate that prospective franchisees are buckling down and doing their homework. More than 85% said that they had sought out former franchisees to ask them about their experiences. One author suggests franchisees should speak with 15 former franchisees, not just a couple. That can be a lot of legwork, as well as time and energy. However, your conduit to owners— as well as market and industry data, and accurate information about the Sacramento business climate is Andrew Rogerson.
When you enlist a business professional like Andrew, you get the benefit of his years of working with businesses in the Sacramento area. Partner with him and be certain that you have all of the facts before moving forward. This information includes items like annual data on overall franchisee satisfaction and profitability rates of the franchise; a list of franchisors who you can contact and are willing to share their experiences; and a summary of a franchisor’s Franchise Disclosure Document (FDD).
So what should I do?
Don’t buy into a franchise without an absolutely unobstructed view of all aspects of the business. Whether you’re considering a franchise in commercial cleaning— a $100+ billion industry— or tax preparation or another business service, Andrew Rogerson can help you find the industry and business model that match your interests, level of investment, and preferred type.
Andrew is a business expert and has worked with franchisors and franchisees in cities throughout the Sacramento Region, like Citrus Heights, Rancho Cordova, Folsom, Elk Grove, Roseville, Rocklin, Davis, El Dorado Hills, and Cameron Park.Andrew can help you with deciding on an appropriate franchise, your location in Sacramento, competitive intelligence, financing, in addition to providing answers to all of your questions.
Take the time to speak with Andrew about buying a franchise or determining how to franchise your business. Please visit our website Services . You can also get in touch with Andrew via email or call him at (916) 570-2674.