According to a PricewaterhouseCoopers study titled "The Economic Impact of Franchised Businesses," franchising encompasses approximately seventy-five industries, including such businesses as tax services, advertising, automotive services, books and publications, children's products, clothing, computer sales, construction, restaurants, medical services, weight-loss, home furnishings, maid services, motels and hotels, fitness centers, as well as real estate. One out of every twelve business is a franchised business, totaling over 750,000 franchise establishments in the U.S., producing output worth nearly $625 billion. A new franchised business opens every eight minutes in the U.S. alone. It is estimated that franchise outlets account for more than half of U.S. retail sales. There are presently over 3,000 companies offering franchise opportunities. This does not take into account companies operating as licensors or their licensees. Nor does this take into account emerging companies wishing to establish themselves as franchisors or licensors.
Studies have clearly shown that those choosing to open a franchised business have a much greater likelihood of success than those choosing to open a business without the support of a franchise system. It is also clear that expanding an enterprise through the offering of a franchise business opportunity is a very successful model allowing for aggressive growth and diminished needs of large capital outlays.
As the statistics establish, franchising is a very successful and mature business model that continues to grow at an enormous rate. It is unquestionably a proven growth strategy that works in many and diverse industries.
The proven formula of the franchise model dramatically expands the entrepreneurial dream on a local, national and international basis. Maximizing the substantial potential of this business model requires a thorough understanding of the franchise process from both a legal and business perspective. Whether a franchisor or a franchisee, operating a franchise enterprise presents very complex legal and business issues. How these issues are addressed can determine the level of success a company ultimately enjoys. Simply stated, comprehensive franchise representation is critical. Given the extensive experience of our attorneys and staff, Jackson Walker is uniquely qualified to assist a franchise company in pursuit of its goals by providing a strong foundation for success and being diligently responsive as issues arise. As full-service franchise lawyers, we are deeply committed to the success of each and every client.