If The Cereal Bowl does become a franchise, it will have plenty of company. According to the International Franchise Association, there are more than 2,500 franchise operations in the United States and 1,800 of them have at least one active franchisee.
‘In the last 3 years, we have seen an increase of almost 900 new franchise concepts,’ said IFA President Matthew Shay. ‘So there is tremendous growth in this area.’
And fast-food restaurants, such at The Cereal Bowl, top the list. The allure of franchising is that it allows businesses, fueled by other people’s money, to expand quickly while still giving them control of their brand and image.
But as The Cereal Bowl trio are discovering, it’s not a cheap process. According to Shay, the average cost of developing a franchise agreement that meets state and federal regulations is between $20,000 and $50,000. The price difference largely depends on how sophisticated and flexible the franchise agreement will be. Check what the The Cereal Bowl’s document will cover.
Franchise Business Opportunities | Last Week in the Business Opportunities Weblog Network on October 3rd, 2006 at 6:02 pm
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