Francorp Highlights The Modern Day Franchisee
Olympia Fields, IL – New franchise concepts are emerging at a rapid pace with franchisors seeking qualified individuals to become franchisees. These concepts bring a variety of opportunities for prospective franchisees that range from gender specific franchisee requirements to the age specific franchisee. There’s the low initial invest franchisee to the multiunit franchisee that requires significant capital and industry specific knowledge with experience. A franchisor might realize how the operations are run, but does the franchisor comprehend who is out there purchasing these franchise opportunities? In this down economy the flood gates are wide open with qualified individuals looking to get in business for themselves, but not by themselves by leveraging off of a brand name with systems already in place. As a franchisor, one should realize the significance of identifying the ideal franchisee candidate by analyzing the current trends of today’s franchisees. With new franchises appearing on street corners across the country, a shift in modern day franchisee statistics has occurred as well.
The Wall Street Journal produced an infographic titled, “Franchisees: A Breakdown”. The common questions the infographic answers are how many stores does the typical franchisee own? How much does it cost to buy into a chain? And where are the most- and- least popular locations to set up a shop? According The Wall Street Journal, here’s what the typical modern franchisee looks like. For 2013, 28.1 percent of franchisees are women, and 71.9 percent are men. The median age range for a franchisee is 45-55 years old, with 12 percent of franchisees 34 years of age or younger and 28 percent of franchisees are over 55. Quick-service restaurants, lodging and business- related industry sectors are the most popular amongst franchisees, while the video and security-related industry sectors are the least popular sectors comprised of franchisees. The states of California and Texas are the most popular amongst franchisees with over 37,000 and 28,000 units respectively, where as Alaska and Vermont are two states that have the least popularity with franchisees listed at 600 plus units in both these states respectively. 16.2 percent of female franchisees own more than one unit compared to 20.1 percent of male franchisees owning more than one unit. The average initial investment across 3,500 brands in 200 sectors was $520,000 to kick start a franchisee’s dream of owning their own business.
Determining your ideal franchisee candidate before marketing a franchise opportunity is crucial in developing a successful franchisee-franchisor relationship that can save the franchisor time and money. Looking at the statistics of who the potential buyers are of a franchise is just as important as site selection and marketing for a new franchisee location once the unit is up and running. At the infancy stage of the franchise, a franchisor needs to understand the value of awarding a franchise opportunity to the right individuals for leveraging the business opportunity for others to profit from.
Interested in learning more about franchising and/or how to franchise your business? Visit http://www.francorp.com to download the free e-book and take the franchise quiz today! For more immediate assistance call 800-FRANCHISE (800-372-6244) to speak directly with a franchise analyst to learn more about taking your business the next level and beyond.