Franchising Can Work, If You Find The Right One

St. Louis Post-Dispatch:

If you want to start a business and increase your chance for success, franchising significantly tips the odds in your favor. One out of every three dollars spent by Americans for goods and services are spent in a ­franchised business.

Here’s how it works: A ­franchisor sells a trade name and business model and most often provides training, advertising and marketing for a fee to a ­franchisee. Some franchisors even offer financing to allow perspective franchise owners to buy into their companies.

Product distribution ­franchises such as soft drink distributors and gas stations ­account for the largest percentage of total retail sales. However, business format franchises are the most common. In this ­business model, franchisees use the product and the franchisor’s method of running the business.

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