Take a stroll down Main Street in any town in America and it won't take long to notice one distinct feature they all share: they all have more than just one franchised business. And for good reason: franchised businesses have been widely accepted into the mainstream because franchised stores offer known names and dependable standards of quality.
The general public demonstrates its support for the industry right where it counts: at the cash register!
It's no surprise that the U.S. Department of Commerce confirms that franchising is "the wave of the future." That's exactly why smart money is catching that wave right now.
Franchising is the most successful marketing concept ever!
- John Naisbitt, Megatrends Author
In North America, the entrepreneur is our greatest business asset. Any person worldwide has an opportunity to become part of a franchise and participate in that entrepreneurial success. This truly is our greatest export for global economic growth.
- Jeffrey S. Bracker, PhD. Brown A. Williamson Professor of Entrepreneurship
Today, there are over 2,500 franchise operations within the U.S. alone, and over 780,000 franchisees. These businesses generate more than $1 trillion in sales... representing over 50% of the U.S. retail market! Better than one out of every two dollars spent by Americans for goods and services is spent in a franchised business, and more than 8.8 million people draw their paychecks from franchised businesses. To illustrate how extraordinary this industry really is, a new franchise business opens somewhere in the U.S. every 8 minutes every day!
23.8% Restaurant
12.6% Maintenance
12.6% Personal Care
8.2% Children Businesses
8.0% Other Services
6.4% Retail (Non-Food)
5.8% Business Services
5.0% Hotels and Motels
4.2% Automotive
3.8% Home Improvement
Business Synergy
The key to the success of franchising is its ability to harness the combined energies and talents of ambitious entrepreneurs under a single banner to gain market strength, become household names and realize their shared goals. Group advertising, buying power and the sharing of ideas are some examples of what can happen. Proof that franchising works is everywhere. Prominent national and international franchise organizations include McDonalds, Century 21, Hilton Hotels and Midas Muffler Shops.
Adaptability and Demand
While today’s consumers prefer to deal with familiar names and national brands, their continually evolving needs and desires help create in-roads for developing new specialized market niches. For example, franchises such as dry-cleaning, lawn care, day care, coffee houses and computer training for children are now considered mainstream.
Supply
Franchises offer services and products to meet the desires of their customers. Such adaptability makes it reasonable to conclude that the franchising industry has a very realistic chance of continuing to succeed where less well supported and individually directed businesses "go under."
Across The World
Although franchising is a uniquely American way of doing business, U.S. chains are finding great success in foreign countries. Converging consumer tastes and buying habits make global marketing a reality.
The outlook for the franchise industry is that it will continue to grow in the coming years. The opportunity has been born of the need for specialized and knowledgeable funding and development of developmental stage franchise product and/or service concepts. We believe there is an opportunity in the franchise marketplace for a franchise development firm, such as FranCap, to partner with either existing or prospective franchisors to build their franchise operations rather than charge large upfront or ongoing cash fees for franchise development services such as most other franchise consulting firms that currently operate in the marketplace today.
In addition, we believe that meaningful investment support for aspiring franchisors has been almost entirely neglected until now. It is this void that FranCap intends to fill by sourcing of capital investments to qualified start-up and/or established early stage businesses, whose principals in concert with FranCap's Management Team, believe a successful franchise product or service can be speedily developed, packaged, registered, marketed and profitably managed.
The value proposition that FranCap offers to existing small established businesses (that have the potential to become franchise operations) and to existing early stage franchisors (that have the potential to become large successful franchisors) is to provide them with the franchise development expertise and capital sources that will enable them to potentially become large national brands.
FranCap's compensation for providing its franchise development services is generally performance based. In other words, FranCap may derive its revenue primarily from a revenue sharing arrangement with the franchisor in exchange for providing the franchisor with FranCap's franchise development services. In addition, FranCap may also take a small equity position in the franchisor.
FranCap's search for suitable franchise development opportunities is generally directed towards small and medium-sized enterprises which have the desire to develop and license their franchise rights. Typical franchise opportunity targets will: (i) be development stage entities with established "proof of concept"; (ii) be experiencing financial or operating difficulties; or (iii) be in need of expertise and funds to develop a franchise system.
We are all aware of the explosive growth and popularity franchising has brought us. We see it everywhere, it's all around us, and as we know it, it has been since the 1950's. Surprisingly, franchising - due to consumer demand - has been around since the days of Julius Caesar, the 50's BC! What’s even more surprising is the fact that franchising continues to flourish and grow at a pace even more rapid today than it had in every year past, in spite of the glaring fact that, historically there has never been a funding source (i.e., investor capital) that could answer to the needs of the start-up franchise!
Never... until FranCap: A unique and dynamic firm that not only specializes in the development, marketing and management of franchises, but also sources investment capital for either start-up or early stage franchisors.
Project Types: FranCap targets projects that must satisfy stringent criteria before being passed on to FranCap's Franchise Management Team for in-depth consideration to better determine the potential for ultimate success and profitability.
FranCap's Management Team, a group of franchise development, management and marketing experts, personify the core of FranCap's success: professionals with a proven track record as solid and consistent as "grandfather's clock"; pioneers who helped shape franchising in its infancy and who today continue to update franchising by designing and implementing timely and unique marketing concepts, organizational systems and technological methodologies. Methodologies of doing business that shall have led FranCap to develop a powerful alliance of experienced professionals and investors who bring capital, connections and the business skills, to better assure the success of FranCap’s endeavors. It is this same alliance that serves as FranCap’s officers and board of directors: the FranCap Management Team that combines strength, character and integrity. Just as the wheel and electricity brought transportation and communication into the modern era, so does FranCap impose the gears of its timeless energies and inventiveness into a thriving global economy.
SIZE, SIZZLE, AND SUBSTANCE
We know what consumers' needs and desires are, and we believe we have a firm grasp of market and industry trends. Although FranCap does pursue small or slow-growth projects, we generally prefer to seek out opportunities that have the potential to generate gross revenues in the hundreds of millions of dollars.