Importance of a franchise

What Is the Importance of a Franchise?

By Franchise Information June 28, 2022

Travel anywhere in the United States and you’ll see the familiar signs of many beloved franchises. These diverse businesses serve a vital role in the American economy, and the importance of franchising can’t be overstated. 

Here are some of the important contributions franchises make to our society. These also serve as reasons why you should start a franchise of your own.

Franchises Create Jobs

When you open a franchise, you employ more than just yourself. You’re creating jobs, and those jobs represent opportunities for millions of workers coast to coast. 

It’s not just the jobs at each individual location that matter. With a nationwide franchise, jobs are multiplied as locations are added across the country. In other words, the more franchise locations that exist, the greater the benefits for job-seekers in the area.

Franchises Contribute to Economic Growth

Opening any small business represents economic growth, but franchises have a slight edge. Since they’re part of a larger, nationwide chain, franchises are better equipped to grow new locations than other types of businesses. 

This means when a franchise opens its doors, it can quickly become sustainable. The revenue it generates helps support the local economy. What better explanation is there of the importance of franchising for the community?

Franchises Provide Opportunities for the Underprivileged

Many franchises are willing to hire the underprivileged — including those with Down Syndrome or other special needs — who are often sidelined from other companies and industries. Franchises play a unique role in providing opportunities for employment and personal growth. 

This not only provides an employment opportunity but also gives the disenfranchised a greater sense of personal worth as they contribute to a team. While it’s not unusual to find other small businesses employing special needs workers, the broader network of franchises means that these positions are easier to find than ever before.

Franchises Build a Brand Name

The more locations a business has, the more quickly the business becomes a “household name.” 

That’s actually one of the best reasons why you should start a franchise: built-in brand recognition. Customers will immediately identify with the franchise brand and know what type of food or products they provide as well as what to expect from their shopping or dining experience. 

Franchises reinforce this brand recognition by simple virtue of their geographic distribution and national ad campaigns. That’s good news for each franchise owner/operator, who reaps the benefit of being part of a well-known, fully-established brand.

Franchises Provide Convenience for Consumers

Where do you typically find franchise locations? The answer, more than likely, is “everywhere.” 

Small businesses don’t usually have the funding to open multiple locations, which means that they operate out of one strategic area. Franchises, on the other hand, have the financial means to spread far and wide. 

Franchises are found just about anywhere that people are. They can be located near other major businesses, by interstate exits, and sometimes even inside other businesses, such as gas stations or even certain big box stores.

Franchises Create a Support System for Franchisees

If you’ve ever wondered why you should start a franchise, consider this: Operating a franchise gives you the chance to be your own boss. It also provides you the solid, time-honored support of the franchise itself. The company you work for can help you with things like funding, equipment, and even training. 

As a franchisee, you become part of a community of other franchise owners. This network can offer valuable support, particularly if you encounter seasons in which your business takes a downturn or the economy is at a standstill. 

This franchisee network may be able to share best practices and give advice on how to weather a “rainy season,” financially speaking.

Franchises Help Their Communities

Just because a franchise represents a nationwide chain doesn’t mean they don’t offer value to their local communities. It’s not unusual for franchises to take part in local charity or funding events, where a portion of their proceeds contributes to a local educational, medical, or social cause. 

Once again, this practice highlights the importance of franchising for the local community, who reap the benefits of these initiatives.

Find Your Next Opportunity

Franchising allows you to be part of something bigger than yourself and have an impact on your community and world. If that sounds like a path worth exploring, visit Franchise.com today. You’ll find more information about starting a franchise, and you can use the search tool to find franchise opportunities in your area.

About the Author - Franchise Information

A Trusted Industry Leader Since 1995. Founded in 1995, Franchise.com was one of the first franchise recruitment websites in the world. Today, we continue to be the 'go to' place for people beginning their business opportunity search and the journey of franchise ownership as well as for those already involved in the world of franchising.