Full Answer
How many franchise concepts are there?
There are more than 750,000 franchises in the United States alone. Franchises in the US provide employment to more than 8 million people. Of all franchise workers in the US, 50% are employed by quick service restaurants.
How many franchise systems does South Africa have?
Join 2000+ members and get weekly franchise insight There are approximately 850 franchised brands currently with 41,000 outlets, with this number growing annually.
How many franchise establishments are in the US?
792,000 franchise establishmentsIn 2022, it is estimated that there will be some 792,000 franchise establishments in the United States, outputting some 827 billion U.S. dollars and employing 8.5 million people.
What are the 4 types of franchising?
The four types of franchise business you can invest inJob or operator franchise. These owner operator franchises are usually home based, which keeps overheads down to a minimum. ... Management franchise. ... Retail and fast food franchises. ... Investment franchise.
How many franchise systems exist in the UK?
There are now 48,600 franchise units in the united kingdom, a rise of 10% from 2015. There are also 935 business format franchise systems, around double of what there were 20 years ago.
How many franchise systems are there in the UK?
48,600 franchisesThere are an estimated 48,600 franchises in total in the United Kingdom. This figure shows how big the franchise market is in the United Kingdom. This can turn out to be an advantage for new entrants in the franchise business as there are a lot of opportunities to grow.
How many franchises are there in the US 2022?
792,014 franchise establishmentsFranchise growth is expected to stabilize in 2022, expanding by 2.2% to reach a total of 792,014 franchise establishments, 17,000 more than 2021.
How big is the franchising industry?
10.5% of all businesses are franchises, according to the U.S. Census Bureau. About 14% of all franchisees are veterans. As of 2021, veterans own 66,000 franchises and generate $41 billion in GDP. The U.S. franchise sector is comprised of more than 780,000 businesses.
How many states regulate franchises?
As noted above, the FTC regulates franchising at the federal level under the FTC Franchise Rule. The FTC Franchise Rule (the FTC Rule) governs franchise offerings in each of the 50 states, the District of Columbia and all US territories.
What is franchise system?
A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand's trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.
What are the 3 basic types of franchising?
There are three main types of franchise opportunities available, these are: Business format franchises. Product franchises, or Single operator franchises. Manufacturing franchises.
What are two types of franchise systems?
There is a wide variety of types of franchise structures used in the industry today. There are two main types of franchising, known as Product Distribution Franchising (Traditional Franchising) and Business Format Franchising, which are conducted under a variety of franchise relationships.
What are the franchise available in South Africa?
There are many franchise opportunities that exist in South Africa....What is the Most Profitable Franchise to Own in South Africa?McDonald's.Burger King.KFC.Nando's.Fish & Chip Co.Wimpy.Debonairs.Steers.More items...•
What are two types of franchise systems?
There is a wide variety of types of franchise structures used in the industry today. There are two main types of franchising, known as Product Distribution Franchising (Traditional Franchising) and Business Format Franchising, which are conducted under a variety of franchise relationships.
Which country has the most franchises?
The U.S.A. is often seen as the go-to country for franchising, having been the birthplace for many of the largest international brands.
What is franchising in South Africa?
The Franchising Association of South Africa (Fasa) loosely defines franchising as the granting of a right to operate a business or licence under certain specific conditions.
What was the biggest franchise in the world?
Coca-Cola quickly became the biggest franchise in the world, at least when it comes to fizzy drinks. The real boom for the franchising industry came during the baby boom era. World War II was over, the world was getting back on its feet, and people needed lots of new products and services.
How many McDonald's franchises are there?
The world’s biggest franchising success story is more than 60 years old. McDonald’s now has more than 38,000 locations worldwide and employs nearly two million people. In an effort to meet the needs of customers, the food franchise is evolving by investing in tech. In 2019 alone, the company struck a $300 million acquisition deal with a personalization and decision logic technology firm. That was followed by the purchase of stakes in several companies that develop mobile apps, mobile payment systems, and even artificial intelligence.
Why is franchise important?
A franchise also offers a way to overcome great distances. These franchise facts have helped many in the business world make money.
What was the first franchise operation in history?
Back then European monarchies allowed noblemen and the church to manage lands that belonged to the Crown. They were charged with protecting the territory and collecting taxes. The nobles granted local farmers the right to use a piece of land in exchange for royalties. This is considered the first franchise operation in history.
Why did Pizza Hut get its name?
The founders of Pizza Hut, Dan and Frank Carney, chose that name because they couldn’t afford more letters for the restaurant’s sign. Some still wonder what the name of the famous pizza place would have been if the founders had more than $600 in their pocket.
How many McDonald's are there in the world?
McDonald’s is the world’s biggest franchise with more than 38,000 restaurants.
Why is 7-11 called Tote'm?
7-Eleven used to be called Tote’m because some of their stores had Alaskan totem poles at the entrance. The name was changed when the company introduced a new working schedule from 7 a.m. to 11 p.m., seven days per week.
How ‘New’ is ‘New’?
A good rule of thumb is that a franchise system would be considered ‘new’ if it has been in existence for less than two years and has not opened several locations in more than one market. There are no legal restrictions on how many franchise locations an emerging franchisor should have before they begin to franchise, or how many new franchises they should have open within those first two years.
Why do I like emerging brands?
I like emerging brands because they are exciting and often can bring to market the ability to be more nimble than larger, more mature brands. However, there are several risks to consider before investing in any new franchise system.
What is a franchise system?
Franchise systems are governed by the Franchise Agreement, which may lead new franchisors to believe that each franchisee should or must be treated equally. But great franchise systems recognize that not every franchise needs or should get the same level of support from their franchisor. Well-run franchisors generally will exceed the level of support for franchisees provided for in the franchise agreements, and within reason provide what is required.
Why are emerging franchisors less averse to negotiating terms?
As they begin to offer franchises, emerging franchisors may be less averse to negotiating some of the terms of their Franchise Agreement – simply because many potential franchisees will see their offering as somewhat more risky than more established franchise brands.
Is it better to become an early franchisee or an emerging franchisee?
There are advantages to becoming an early franchisee of an emerging franchisor. Just like any new franchise that is investing their life’s savings into a business, a new franchisor is likely doing the same. Because of that, they will be motivated to prepare their franchise organization in a way that can make them and their franchisees successful.
Why do franchisors hire leaders?
Struggling to keep up with growth, franchisors begin hiring leaders and employees from other franchise chains. Because the role demands that employees and leaders build the plane while they’re flying it, they never learn or acclimate to the franchisor’s culture. Instead, they solve problems, manage and lead they way they did in their previous corporate culture or cultures. This often creates a breakdown with franchisees and with valued existing employees, creating franchisee dissatisfaction and franchisor turnover, at a time when the brand is counting on its experienced employees to step up and take on more.
Why is lack of communication important in franchising?
This lack of communication can create franchisee and employee relationship fractures and isolated work silos.
What is a successful franchisor?
Successful franchisors understand they are in two separate and distinct businesses: The customer-facing business. The business of franchising. FPG defines the business of franchising as “Recruiting, training, developing, financing, resourcing and leading a team of profitable franchisees.”.
How many units does a FPG franchise have?
FPG franchisor financial models show that typical brands don’t achieve royalty self-sufficiency until they pass the 40- to 100-unit mark, and according to one presenter at a recent IFA conference, fewer than 5% of franchisors reach 100 units within a 10-year time frame. Since most franchisors don’t have 10 years of financial staying power, they find themselves selling franchises to anyone who will buy them, just to survive. Franchisors focus on short-term cash needs and strategy goes out the window. Clearly, this is not a recipe for success.
Why do franchisors fail?
In my 30+ years of franchising, I’ve seen more franchisors fail to actualize their potential not because of competitive threats, but because of how they view their own business. Early Stage franchisors often view their business from an insulated insider’s perspective, rather than looking at the business from a more classic supply-and-demand, industry and franchise candidate/investor perspective.
What happens when supply exceeds demand?
In typical markets where supply exceeds demand, the classic case of oversaturation, prices go down and margins get squeezed until enough brands exit, allowing the surviving brands to create a sustainable level of profitability. In the current franchisor climate, however, franchise fees have escalated and new franchisors continue to enter the market, creating a state of disequilibrium. Franchisors are either ignorant of the hypercompetitive market or simply overestimate the investor demand for their business. But, as always, market forces will drive disruptive change, creating winners and losers along the way.
Why is growth important for franchisors?
Growth also helps the franchisor build its brand as the employer of choice , adding more responsible and talented workers on both the franchisee and franchisor levels. The franchisor continues to refine its model, shortening the time to break-even, value-engineering the investment level down, negotiating better financing programs for startups and expansions. Simply put, everything appears to be working better all at the same time.
What are the challenges of franchising in Australia?
The biggest challenge is finding a master franchisee. This stems from the relatively small population base, and there is also difficulty in finding financing. The four commonly used banks all have a small touch on the franchise sector. The main issue is their ability to assess franchise risk. Private equity investors have shown interest in successful franchises, but have not been suitable partners for concepts looking for master franchisees. There are also significant challenges regarding a lack of suitable sites and the affordability of sites, especially retail sites. Australia’s retail costs are higher than in the United States and our labor rates are almost double of those in the United States. The national minimum wage in Australia is currently AU$17.29c per hour, and casual employees covered by the national minimum wage also get an additional 25 percent on the hourly rate. Collectively these factors can limit U.S. franchise systems’ translation in Australia. There is a Franchise Code of Conduct that regulates the sector. It governs how franchisors and franchisees deal with each other. Franchisors are expected to follow the code. U.S. companies need to engage consultants or franchise lawyers with experience with the Franchise Code to ensure they are compliant. The U.S. Commercial Service can help provide a list of these service providers.
How to find Australian franchisees?
Australian Franchisors regularly use one or both of the top lead generation online platforms – Seek Commercial and Cirrus Media. These platforms are used extensively by local franchisors to find unit franchisees. In terms of finding master franchisees, one option for U.S. franchisors is to approach existing large Australian franchisors that have achieved saturation of their own brands in the market. Typically, these Australian franchisors would then look to expand internationally (about 30 percent of these franchises do), but some are open to taking on a U.S. franchise. There is a national franchise convention organized by the Franchise Council of Australia, usually held in October each year that provides a potential forum for U.S. franchises to meet prospective Australian partners.
Why is franchise important?
The franchise sector is an important, yet often overlooked, component of U.S. exports. In the United States franchised business directly accounts for more than 733,000 establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 3 percent of Gross Domestic Product. Franchising as we know it today emerged in the U.S., but has found success across virtually every culture on Earth. Because America is the world’s most mature and sophisticated franchise market, use of the franchise model internationally is a competitive advantage for U.S. exports, agriculture, manufacturing, and supply chains. According to the U.S. Bureau of Economic Analysis, franchise fees have an overwhelmingly (34 to 1) positive impact on America’s trade balance. The international growth of franchises acts as a significant export multiplier, with many other U.S. goods and services flowing through the door opened by the franchise agreements and further driving U.S. employment.
How long do franchises last in Korea?
According to Korea Franchise Association, the average lifespan of a franchise brand is 4.5 years, and only 0.8% of franchises survive after 10 years in Korea. Beverage/cafe and pub franchises last less than the average while fast food and ice cream franchises survive 6 to 7 years.
How many people live in Guatemala?
The capital, Guatemala City, has a population of almost 4 million and features first-class hotels, shopping center, malls and restaurants.
What percentage of the workforce were women in the 1980s?
In the 1980s women made up 35 percent of the workforce. Women now represent 45 percent and workforce participation rates have increased for both men and women. Australia’s ageing population combined with the fact that consumers are staying longer in the workforce has been a major driver behind retail demand.
How many elderly people will be in Brazil by 2050?
This age group has grown 11 times in the last 60 years in Brazil. Today there are 18.5 million elderly (55% women and 45% men) and in 2025, they will reach 64 million, and by 2050, one in three Brazilians will be elderly. Today 75% of the elderly have financial independence.
Company History
In 1971, Jim Jackson founded the company, originally called Electronic Realty Associates, with the vision of utilizing the latest technology - then a fax machine - to provide the highest quality service. Since that time, ERA Real Estate has continued its innovator role. In 1973, ERA Real Estate offered the first nationwide home warranty program.
Corporate Charity
For more than 35 years, ERA Real Estate has been committed to enriching the lives of children and adults living with muscular dystrophy and other neuromuscular diseases through our support of the Muscular Dystrophy Association (MDA). Through the ERA MDA Summer Camp Challenge, we will send over 1,000 kids to MDA Summer Camp.
