Franchising: An Entrepreneurial Opportunity. (Special Advertising Section)

By Brown, Carolyn M. | Black Enterprise, May 2002 | Go to article overview

Franchising: An Entrepreneurial Opportunity. (Special Advertising Section)


Brown, Carolyn M., Black Enterprise


Travel to any town in America and you are bound to find a franchised business: one in which you buy the right to run a brand name business and sell its products. One of the fastest growing segments of American business, franchising is an ideal partnership for an independent entrepreneur. As a franchisee not only do you buy the right to the company's name, trademarks, products, business procedures, marketing, advertising, and other components unique to that particular business, but you are backed by the substantial knowledge, skills, experience, and financial strength of the franchisor. For would-be entrepreneurs, franchising provides an affordable means of accelerating expansion, achieving development goals more quickly than might otherwise be the case and with far less risk.

Even if you are not the typical, risk-taking entrepreneur, you may be suited to running a franchise, says Sonya Thorpe Brathwaite, director of diversity and emerging markets with the International Franchise Association in Washington, DC. That is because instead of starting your business from scratch, you're running a business with a proven track record. "You are in business for yourself but not by yourself." Whether it's accounting and financing, advertising and public relations, personnel management, purchasing or inventory control, franchisors are there to provide hands-on, one-to-one assistance. While franchising does provide great opportunities, it does not create miracles. You must combine knowledge and resources with entrepreneurial drive and spirit.

Fast-food giants McDonald's and Burger King automatically come to mind. However, there are more than half a million franchises operating in the United States generating more than $1 trillion in retail sales. The people who draw their paychecks from franchising come from all walks of life--from recent college grads to downsized corporate professionals.

More minorities are discovering franchising opportunities thanks to increasing recruitment efforts by companies such as Wendy's, Merry Maids, Jan Pro, and Interim Healthcare. The IFA Educational Foundation has received a significant number of donations to increase diversity within the franchise industry, including educational grants of $250,000 from Coca-Cola Corp. and $150,000 from Marriott Hotel. Moreover, a strategic alliance was formed between IFA and the Minority Business Development Agency to help groom and develop more African American franchisees.

Access to capital remains the critical key to opening the door of franchise ownership. Some franchises sell for as little as $1,000, but the average franchise costs about $150,000 in total start-up costs. Franchising in and of itself does not end obstacles that otherwise competent and capable minority entrepreneurs face, but there are a growing number of banks and venture capital firms that are starting to earmark funds for minorities and women interested in owning a franchise. Start by contacting your state economic development office to find out what financial resources are available in your area.

A great resource, the IFA is the largest and oldest industry trade group, with members operating in more than 75 industries including construction, weight loss, daycare, hotels and motels, and travel agencies. IFA's Franchise Opportunities Guide provides a list of franchise companies ($17 plus $6 for shipping and handling). Call 800-543-1038 or visit www.franchise.org/boookstore/bookstore.asp. You can also get a copy of the Business Opportunities Handbook by calling or visiting www.franchise1.com. Another source is Franchise Times ($35 a year; 651-631-4995 or www.franchisetimes.com), which addresses the needs of prospective and existing franchisees. The Franchise Network (www.bison1.com) is a major resource of information for franchisees, and FranCorp (www.francop.com) is the world's largest consulting group for franchisees. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Franchising: An Entrepreneurial Opportunity. (Special Advertising Section)
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.