Franchise Sales

What is Franchising?

According to the International Franchise Association (IFA), franchising is a method of distributing products or services. At least two levels of people are involved in a franchise system: (1) the franchisor, who lends his trademark or trade name and a business system; and (2) the franchisee, which pays a royalty and often an initial fee for the right to do business under the franchisor's name and system. Technically, the contract binding the two parties is the “franchise,” but that term is often used to mean the actual business that the franchisee operates.

Who Invests in Business Franchise Opportunities?

The majority of franchise business buyers are success-oriented, educated, family-minded, corporate people. As corporations switched their focus from employees to investors, they realized how expensive their senior level employee had become and they began down-sizing their mid and upper level managers to save money and improve investor stakes in their companies. Due to this downsizing trend, a growing number of outstanding corporate managers are now the driving force behind franchising.

The Franchise Buyer

A 25 year study conducted by the IFA pinpointed the "Typical Franchise Buyer." Business buyers that seek franchise opportunities will come from all walks of life, educational and economic backgrounds, but some of the typical characteristics are:

  • Between 35 and 55 years old
  • Corporate Management Background
  • Income Avg. $60 to 150K
  • Net Worth of $250 to $600K
  • Majority Have IRA/401K Retirement Plans
  • Men, Couples, Women in that order
  • Most Have Not Owned a Business
  • Want to Build a Business That Will Allow Them To Retire
  • Looking For On-going Marketing, Training and Support

24301 Southland Drive Suite 409 Hayward, CA 94545 Direct: (510) 397-1942  eFax: (203) 724-2156 Email: info@united-business.net

Licensed by CA Bureau of Real Estate ID: 01186051