Over the last five years, there has been incredible growth in the worldwide franchising sector. Part of the surge in popularity is due to an increasing number of entrepreneurs wanting to strike out on their own; others, on the other hand, are drawn to the booming industry by their desire to own a piece of a larger pie.
As Franchising.com’s Eddy Goldberg writes, “franchising provides the opportunity to be master of your own financial destiny, while enjoying the support of an established organization and the resources it commands.”
Recent industry data is hard to find; however, a 2012 industry report projected the revenue for the global franchise industry to reach $3.96 trillion USD by 2015. Analysts attributed the international growth to the emergence of more small scale franchisors and the rising shift toward digital businesses.
“Online franchising and trading online offer tremendous opportunities for potential franchisers, franchisees, and consumers,” states the Global Industry Analysts report.
The digital revolution has also allowed franchisors to cross borders and go international. According to Franchise Help.com, the estimated amount of American based businesses with global franchises sits at over 800, with the addition of 100 more annually.
American-based Zoup is one of those companies.
The growing soup franchise, which opened in 1998, has more than 87 locations nationwide with a few in Canada as well. 2015 proved to be a record setting year for the bullion-based company, with a 24.8 percent increase in sales and 37 new franchise locations in development.
“Our brand’s strength is identifying those who share our passion for the brand and helping them build their own successful businesses,” said Eric Ersher, CEO of Zoup. “This is why we’re focused on franchising and why we’re always expanding.”
Zoup plans its continued expansion into the Canadian market to last well into next year.
Canada is also ripe with franchise opportunities of its own. The Canadian Franchise Association boasts more than 700 franchise members across the country and points to steady momentum in the sector as signs of the continuing growth trend.
Distributorships, a subsector of franchising, is another way entrepreneurs can benefit from owning and operating a small business that is branded by a larger, established company. MTI Magnolia Telecom, a Canadian telecommunications provider, is one example of a Canadian business that offer distributorships instead of franchises.
Each MTI Magnolia Telecom distributor manages an MTI Magnolia Telecom pre-paid phone card display, which is set up in establishments like convenience stores by the company. Distributors then stock and monitor the display for refill.
Distributorships can be smart investment opportunities for entrepreneurs with limited investment funds or those who want to have extra income but are short on time.
Businesses like MTI Magnolia Telecom make becoming a distributor easy, with everything you need coming out of one box. They also offer the added benefit of round the clock customer service to help those working from themselves troubleshoot any issues that may arise.
Unlike small businesses, there is much less risk associated with franchising and distributing, primarily because the franchising company has already created a successful business model. For those looking to enhance their current income or those who want to go into business for themselves, franchising and distributorships are viable and lucrative options.