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Fundamentals of Franchising International Franchise Association Started in 1960, the IFA is the world’s oldest and largest organization representing this unique way of doing business Mission: Enhance and safeguard the business environment for franchisors and franchisees worldwide Currently have over 30,000 members, spanning 75 different industries, doing business in more than 100 countries Spans more than 75 industries Accounting/Tax Services Automotive Products/Services Business Services Children’s Services Clothing Shoes Construction/Remodeling Cosmetics Educational Services Employment Services Environmental Services Restaurants Hair salons Home furnishings Hotels/Motels Janitorial Services Laundry/Dry Cleaning Lawn Garden Maid Services Printing Services Real Estate U.S. Franchise Market More than 760,000 franchised businesses in the United States Accounts for 9.5% of the private sector output Directly provides jobs for almost 10 million Americans Combining both direct and indirect job activity, franchising generates one out of every seven jobs in the private sector What is Franchising? A marketing method in which the owner of a product or service, known as the “franchisor”, offers the right to operate and manage his product service to others, the “franchisees”, in return for a fee and ongoing royalty payments. Advantage to Franchisors Franchisor can expand without direct investment Store operators are usually owners, not managers Advantage to Franchisees In many cases, no previous experience required In business for yourself, but not by yourself Affiliate with a brand name Become part of a “proven system” Receive on-going training and support Access to product and equipment Franchising is NOT... A guarantee of success Like any business, still risks For everyone Consistency is key to franchising A short-term commitment Average contract is 10 years Evaluate yourself first Do you require a certain