The economic climate in the United States appears to be stabilizing. If economic forecasts are accurate, US GDP will grow 2.5% in 2012. Some economic forecasters also believe that the US will finally pull itself out of recession in 2012.

So where are the investment opportunities in a recovering market? The stock market? Many will continue to view it as too risky. What about real estate? With the rate of foreclosures, inventory plentiful, and price volatility, real estate is an unlikely opportunity. Where is the opportunity then? One promising area is franchise opportunities. Purchasing a franchise allows an entrepreneur to have significant ownership and income potential. Buying a franchise is considered by many to be better than other new businesses.

Why choosing a franchise business is often a better option than other new businesses?

1. Every business has a learning curve. In most start-ups, the curve is steep because the operational processes, marketing plan, and branding must be developed and implemented. With the franchise, the franchisor has already developed the processes, the marketing, the brand and has established a training program for the franchisee. Additionally, prior to purchasing the franchise, the franchisee has the opportunity to learn all about the documented successes and failures of the franchisor’s franchise opportunity and from conversations with existing franchisees.

2. Obtaining financing for a franchise business can be easier than with other start-up businesses. Lenders are hesitant to lend money to a business that has no track record. The franchise model offers lenders a more established business model and track record that they can use in the evaluation process.

3. A franchised business receives ongoing support from the franchisor. The franchisor trains the franchisee and their employees and equips them with the tools that will help them succeed. New businesses must rely almost exclusively on the resources and knowledge of the new business owner.

4. New businesses can have a hard time finding the right suppliers that will sell them the right materials or products at the right price. A franchise provides a network of established suppliers and is able to utilize economies of scale in purchasing, which can contribute to considerable savings for the franchisee.

5. A new sole proprietorship does not have an established brand value. New business owners have to invest heavily in marketing efforts to get the word out. There is no guarantee that marketing will attract target customers and build the brand. With the franchise, the brand is already established and the target customers are already identified. In most cases, the marketing costs are shared by the franchisor and the franchisees.

6. According to a Price Waterhouse Coopers (PWC) report, the total number of franchised business establishments is expected to grow to 784,802 units in 2011 and employ 7.8 million Americans. In 2010, the corresponding figure was 765,723. Corresponding numbers for other small businesses are not available.

7. Potential franchisees should be aware that they will be required to pay royalties to the franchisor. Those who become franchisees have obviously determined that the brand benefits, ongoing support, training, supplier development, economies of scale, and other advantages are worth the cost.

8. According to statistics published by the US Department of Commerce and Business Administration, a franchised business has a 90% chance of success, while a non-franchised start-up business has a 15% chance of success.

9. Continued interest in the franchise business model is high. By one estimate, 300 franchises are purchased in the US every week.

10. The franchisor maintains a vested interest in helping its franchisees succeed because the franchisor is required to report its successes and failures to the public in its Franchise Disclosure Document (FDD). If the franchisees are successful and grow, so is the franchise.

11. A franchisee is also networked with other franchisees in the company. Such a network is invaluable because the franchisee learns about new trends, marketing approaches, and best practices that will help them succeed. These are some of the many reasons why franchise businesses remain popular even in an uncertain economy.

Let us help you explore your options. We have access to over 300 great franchises in all industries. Some are surprisingly cheap. We also have access to many franchise lenders that will provide financing for qualified buyers.