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If you're considering which franchise opportunity might be best for you, the best place to start might be by getting some franchise advice from people already in the franchise business.
The definition of a franchise, according to the International Franchise Association (IFA) is as follows:
A franchise is the agreement or license between two legally independent parties which gives:
- a person or group of people (franchisee) the right to market a product or service using the trademark or trade name of another business (franchisor)
- the franchisee the right to market a product or service using the operating methods of the franchisor
- the franchisee the obligation to pay the franchisor fees for these rights
- the franchisor the obligation to provide rights and support to franchisees
BusinessNewsDaily recently visited the International Franchise Association Expo in New York and asked experienced franchise owners for advice on franchising and how to choose a franchise.
Recent data from the IFA shows that now might be a great time to consider opening a franchise. The data find that for the first time since 2008 the number of new franchise establishments grew. Overall projections for 2012 call for a growth of franchise establishments to nearly 748,680 units, equaling a growth of nearly 2 percent from the previous year. Direct employment from franchises is also expected to grow to more than 8 million people. Economic output also grew more than 5 percent to $781 billion.
Overall quick-service restaurants lead the charge of franchises having both the most establishments and largest direct employment in the industry. Personal services and retail products and services rounded out the top three in terms of the most establishments. Full service restaurants and business service franchises were the three biggest employers in the franchise world. The rest of the results can be found in the infographic below.
The information in this infographic was conducted by IHS Global Insight and the International Franchise Association.