Top Ten Franchise Industries

Franchises

 According to the International Franchise Association, these are the top 10 franchise industries.

1. Quick Service Restaurants (Fast Food) 2. Maintenance 3. Personal Care 4. Children’s Businesses 5. Other Services 6. Maintenance 7. Retail 8. Business Services 9. Hotels and Motels (Lodging) 10.Automotive Franchising

 One of the fastest growing forms of business ownership  A person who buys a franchise is the franchisee  The seller of the franchise is the franchisor  Franchise operations can be found in nearly all aspects of retail sales  25% of Canadian franchises are in the restaurant sector

Sample Franchises

Product/Service Category Name Of Business McDonalds Tim Horton's Fast Food Harvey's Pizza Hut Midas Auto Repair Speedy Mister Transmission The Gap Clothing Mark's Work Warehouse 7-Eleven Convenience Stores Macs Franchise Agreement

 The business conditions between the franchiser and the franchisee are outlined by a franchise agreement. The franchisee is required to:  Invest a minimum amount of capital  Buy a minimum inventory of goods and equipment  Follow a company manual of procedures  Pay a fee for national advertising  Pay a franchisee or management fee, based on percentage of sales  Often the goods and supplies must be purchased from the franchiser

Advantages  Franchise receives many benefits  Significant amount of capital ensures that an owner will work hard  Fewer than 7% of franchises suffer from bankruptcy in their first five years of operation

Disadvantages  Franchise usually must pay a monthly or annual fee to the franchisor which reduces profit  Franchisee must strictly follow rules  Can not sell other goods  Must use same advertisements  Do not receive all profits