It does not always have to be one´s own ideas which leads to the setting up of a new company. Franchising is one alternative. The famous futurologist John Naisbitt is even convinced that “by the year 2010 franchising will be the most successful way to commercialize a product.”
This opinion is shared by the Swiss consultant Dr. Franz Beeler who has compiled a large amount of information on this subject on the KMU Innovation website.
„The triumphant advance of franchising as the most efficient market expansion method continues worldwide. This advance is of a sustained nature due to globalization and the new technologies in the field of information and telecommunication technology” says Beeler. Whereas in the United States sales are franchised to an extent of 75 percent, there was kind of deficit in this respect in Europe. According to Beeler franchising would provide SME, start-ups and entrepreneurs with completely new opportunities which have not been recognized and used yet.
If one is to believe Beeler, franchising is the cardinal solution on the way to one´s own business. According to a study of the Gallup Institute invoked by Beeler, 85 percent of all one-man companies go bankrupt within 5 years after the setting up, whereas 92 percent of all franchised start-ups are successful. The article and additional information is available on the KMU Innovation website. 