A list of dominant players in America’s fast-food industry prominently includes names likes McDonald’s, Subway, Taco Bell, Pizza Hut and Wendy’s.
Shift over to the hotel industry, and names like Marriott, Intercontinental, Wyndham, Holiday Inn and Motel 6 are ever-present.
And when it comes to the realm of specialized retail services and products, a steady spotlight shines on companies like Hertz, H&R Block, Anytime Fitness, Great Clips and Jiffy Lube.
Those diverse enterprises are all distinctly different, yet they share one common attribute.
That is this: They all are established presences in the powered American business realm of franchise entities.
The scope and vast economic impact of franchised businesses
Although most consumers in Ohio can readily appreciate the sizable role that franchise businesses play in the state and national economy, it is easy to underestimate their sheer commercial clout. Here are a few key takeaways from a recent year highlighted by an in-depth overview signaling the immense significance of franchise companies:
- More than 1,200 U.S. franchise companies spanning myriad industries
- Franchise-realm employment of more than 7 million workers
- Franchise transactions totaling more than one-third of all retail sales nationally
- $800 billion-plus in sales
- More than 550,000 franchised entities
Why the lure? What is attractive re the franchise business model?
Franchise businesses command instant attention from a widespread commercial audience that spans established company owners, investors, financiers, startup entrepreneurs and additional individuals and entities.
For example, notes the above-cited overview, many companies find that franchising is “a remarkable and adaptable growth vehicle.” Working with energetic and determined franchisees can optimally enable an established business to expand while simultaneously conserving funds and resources. It can allow for penetration into new customer areas that might otherwise be difficult.
And the benefits for franchisees can be wide-ranging and considerable. Franchise commentators often note them, mentioning upsides like the following:
- Expedited conduit to business success for creative and driven individuals
- Opportunity for successful franchisees to buy additional businesses and expand territorial presence
- Ready access to a known and marketable name
- Opportunity to learn from franchisor training manuals and guidelines
Of course, engaging in a mutually beneficial franchise relationship is far from being a simple given. American franchise law is subject to federal and state regulation. An Ohio legal source discussing franchise hurdles and opportunities duly stresses that this singular business realm “involves a number of specific legal challenges.”
Does your business concept have franchising potential? That query and related matters can be raised in a candid consultation with a seasoned business law legal team that has a history of effective representation on behalf of diverse commercial clients.