Since their introduction in the early 1930s Wholesale Tyvon Branch Jersey , franchises have grown increasingly popular in America. Although they did not invent the concept, Howard Johnson’s restaurant was the first successful modern franchise. The idea of letting independent operators use their menus, supplies, logos, and even their name for a fee was mutually beneficial for both the franchisor and franchisee.

Why is this?

When franchises first came on the scene, advertising was in its infancy. They did not use terms like “brand identity” or “brand personality.” And when businesses did promote their products, it was generally in the local paper. All of that changed when the war ended. Returning troops were not only thankful to be home and in one piece, they also longed for stability after years of uncertainty. So, what did they do? They started raising large families.

Between 1946 and the 1950, more than 32 million American children were born. What does this have to do with franchising? Good question. The power of advertising did not truly become apparent until the country started growing, and not just its population. The postwar years also included an economic boom that created a stable middle class for the first time in the history of the country.

Growing incomes and families meant that Americans could finally afford to eat out now and again. The popularity of fast food restaurants was the direct result of economic and demographic expansion during this period. Decades after the initial boom, franchising remains one of the most popular business practices in the United States.

What are the pros?

With nearly 37,000 locations in over 100 countries, Subway is the largest single-brand restaurant chain on earth. Whether you love them or loath them, most people would agree that the popular hoagie maker doesn’t do anything revolutionary. They make submarine sandwiches Wholesale J. J. Nelson Jersey , which were around long before they came on the scene. The secret to their success cannot be explained by their products alone, since they are quite common. Anybody can make a sandwich. But not many can prepare them quickly and efficiently and make money on most sales.

The reason Subway is a global hit is because they have a successful business model that can be implemented by anyone who is willing to work hard. It is not surprising then that the company has one of the lowest closure rates in the franchise industry, just 5 percent!

In addition to advertising, the franchisor will also help you train your employees and run your business in the early going. Of course, they won’t do this for free. The franchisor receives a fixed percentage of annual revenues for the services and promotions they provide.

The cons

Franchise fees and royalties are rarely prohibitive. For example, Subway charges 12.5 percent of gross sales every week. Now, that might seem like a lot, but a portion of that payment goes toward advertising. Probably the biggest drawback of franchising is that new owners don’t have a lot of creative or managerial control. They must follow the rules to the letter or they may not be in business for long.

How franchise lawyers can help

If you are thinking about buying or selling an existing franchise it is always a good idea to contact a few franchise law firms. Because the laws vary from state to state, revisions may have to be made to standard franchise contracts. As a general rule, franchise lawyers want to see contracts that leave little to chance. It should be clear and comprehensive, even to the point where it may seem circumscribing.

It may seem counter intuitive, but as most franchise lawyers know, rules and regulations are often a good thing. Why is this? When a franchise presents a rock-solid, non-negotiable contract, it generally means that they have complete faith in their business model. On the other hand Wholesale A.Q. Shipley Jersey , when the contract is ambiguous or vague, it may be an indication that the company has no intention of growing its brand, and that they simply want to cash in on franchise fees and royalties in the short term. That is not the kind of company you should hitch your wagon to. Suggestions to Discovering the Mattress that Functions for you Absolutely nothing beats getting a soft, oh-so-comfy mattress to sleep on at night. And if you've ever woken up on the wrong side of the mattress (pardon the pun) you stand the chance of having a less than best day. You know you haven't slept effectively if:

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