The entrepreneurial spirit is alive and well in the United States. U.S. Census Bureau statistics show that nearly four and a half million new businesses started in the U.S. in 2020, an all-time high. 2021 showed continued growth in that area, and 2022 figures follow the same trend.
Many of these entrepreneurs enjoyed the benefits of business ownership through franchising. According to the International Franchise Association, the estimated number of franchised locations in the U.S. is almost 400,000 in 75 industries, employing nearly 10 million workers. This should give you considerable peace of mind if you are considering a franchise career. The question you need to be certain franchising is right for you. To do that, understand all you can about the field of franchising.
The Basics of Franchising
A franchise is a legal relationship between the owner of a trademark, service mark, brand name, or advertising symbol, the franchisor, and an individual or organization, the franchisee, wishing to use that identification in a business. The franchise governs the method of conducting business between the two parties. Franchising provides a franchisee with a proven business model that has been successfully replicated.
People often say that franchising safeguards those going into business compared with starting from scratch because much of the legwork has been done for you. You pay the franchise fee as your entry into that brand’s system. It allows you to use the brand’s blueprint for success – as a turnkey business opportunity, as you’ll find, with quicker ramp-up and more profit potential. Your fees cover start-up, training, and ongoing support, because it is in the franchisor’s best interest to help you succeed.
Choosing A Franchise
When choosing a franchise to partner with, there are many variables to consider, and it involves some self-analysis. You will need to ask yourself questions like: What are my personal goals? Is a franchise career my next best thing? Find out what type of industries interest you and determine if the brands you are looking at are aligning with your interests and values. Examine your strengths. Do you have strong business acumen? Maybe you’re a people person with strong, soft skills. Think about the role you want to play in your business. If a franchise career is what you are building, you will likely want to do this full time, allowing yourself to understand all the moving parts of your business, which means you need to find a franchise where you can be part of daily operations.
Business-wise you need to understand that a franchise agreement can be a 10 to 25-year commitment; you will be in this for the long haul. Financially, this is an investment. In franchising, you get a better bang for your buck because your initial investment sets you up for success versus a start-up where you are starting from scratch with little knowledge of total costs. Experts say prospective franchisees should weigh the initial investment against their expected return and income, lifestyle, wealth, and equity goals.
In franchising, you are expected to have a certain amount of liquid cash and personal net worth to prove you can afford the investment. Additional build-out fees may need to be financed, but acquiring loans is easier with a brand-name franchise behind you.
Part of your due diligence is to research franchises you are interested in, find out if their fees fit your budget, and if your community needs this business. Talk to other franchisees to get a first-hand understanding of how well the franchisor handles its’ franchisees. You want strong corporate support with sound systems in place for training and marketing.
Jumpstart Your Franchise Career with AAMCO
AAMCO, the nation’s leading total car care franchise, offers a unique opportunity to jump into business ownership with the backing and support of a proven, iconic brand.
AAMCO is dedicated to your success as a new franchisee. Not only has the brand withstood the test of time for more than 50 years as a leader in complex car care, but it has done so by preparing its owners to meet demands and trends as they evolve in the automotive industry. As today’s cars become more technical, AAMCO is ready for this radical shift in auto repair. As a franchisee, you are well-positioned for growth and profit, thanks to the world-class education and support you’ll receive. We’ve invested a significant amount into technology, franchisee training, technician training, and education to make our centers the number one choice for total car care, allowing you to provide the high standards of care that our customers have come to expect and trust.
If you are looking for a lucrative investment opportunity and have the drive for success, the desire to lead, and a passion for serving your community, request information today about the next step in your franchise career.