No Chains Here: How Franchising is Local

By Chip Baranowksi

If you are interested in learning more about franchising with us, please go to the home page of our Franchise website.

Not all businesses are created equal. Whether you are shopping around as a consumer or a potential business owner, it’s important to understand the differences between individually-owned, corporate owned and franchisee businesses.

According to the United States Small Business Administration, in 2013 there were 28.8 small businesses. The SBA defines a small business as “an independent business having fewer than 500 employees” and 2.9% are franchises.

Going Solo

When we think of a local business, we picture someone with sleeves rolled up doing every task in an office—a one man (or woman) operation. This type of business usually has one location, maybe a handful of employees and they serve people in the immediate vicinity. If they need to market their business, it’s up to them to fund it, create it and measure the success of it, then repeat or try again.

What comes to mind are accountants, photographers, carpenters, hair salons, and the like. These are services that cannot typically be outsourced from other places and have to be delivered in a one-on-one capacity over and over again.

Thinking Inside the Box

When we think of a chain business, we think of a gigantic warehouse type of retail establishment. While these companies provide jobs locally, the owners are not locals. These are corporate businesses that rarely have any connection to the community in which the business is located. All marketing decisions are made across the board, usually for every location.

Local Franchise

While there is a corporate office for any franchise organization, the franchisee is a local business owner who serves people one at a time repeatedly. Whether the business is in home senior care, window cleaning or baked goods, it can be customized to each client/customer and long-term relationships are established between individuals.

The advantage of being a franchisee as opposed to an independent business owner is always having support—whether it’s technical, marketing, or developing referral relationships. While there are many similarities to being a solo entrepreneur, franchisees minimize risks since they get ongoing training on how to launch and operate their business. Unlike people who work for a large corporation, a franchisee has the potential to grow their income as much as they desire and are able.

Franchises are also creating local jobs, but the boss is there to oversee daily operations and have a connection with the employees. The owner and employees can engage with the local community to help with local causes and make a meaningful impact with their friends and neighbors.

If you are interested in learning more about franchising with us, please go to the home page of our Franchise website

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