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Thursday, June 20, 2019

Franchising 101


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How does it work?


Franchising has been around for a while – most likely because it’s a system that’s been successful. It works when an individual or group (the franchisee) establishes a relationship with a business (the franchisor) to help grow that business and distribute its product. 

The franchisee pays a franchise fee to use the franchisor’s business model and leverage its existing brand name, while agreeing to follow the operational terms of a contract, also known as a franchise agreement. With the support of an existing business model and a recognized brand name, the franchisee typically gets a quicker return on his or her investment.

Currently, there are over 3,000 franchise systems in the United States, representing a range of industries. These franchise systems represent 3.2% of all businesses and approximately 35% of all retail and service revenue in the country.


How much do Franchisees make?

 

We get that question a lot, but it’s difficult to answer since there are so many variables affecting a financial bottom line. The good news is, your earning potential can be as big as you want to make it. Aside from a stellar work ethic, here are a few factors that can determine your financial success.
  • The kind of franchise you choose is probably one of the biggest variables that impacts earnings. Make sure you’re looking at a business that offers services and products that are in demand. You won't make money if the business is in a sector that's over-saturated or about to implode.
  • The location of a franchise also determines your earnings. With your stores located on the Internet, your market is worldwide. It’s important that customers will want what your business is offering. Remember, traffic drives sales and sales keep a franchise healthy and growing.
  • Your ability to build strong customer loyalty contributes to the success of a franchise. Treat your customers like family – and they’ll keep coming back.
You can join any of the programs offered by Mike's Super Stores and combine it with what you are currently doing. You will want to brand yourself and use the marketing format that has made Mike's Super Stores successful. There are no franchise fees with Mike's Super Stores. We make money with you not from you. Give me a call and I'll help you get started. You can have your store up and running in one day.

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