"The Master value is trust. There are no relationships that can survive for very long without it."

- Jim Amos

Why Franchise Owners Are the Real Heroes of the American Economy

July 5th, 2012
When hard-working risk takers bet on themselves, entire communities winThe American dream is strong in the franchise industry. Consider the story of Aslam Khan. Khan came to the United States from Pakistan in 1986 with a desire to escape the poverty of his youth.

He arrived with very little money, and started out as a dishwasher for Church’s Chicken. It didn’t take long for Church’s to recognize Khan’s ambition and talent. They moved him into a managerial role where he excelled, improving performance and becoming a turnaround expert for the franchise.
Now, the man who came to America with a few bucks and a dream owns an empire of more than 160 Church’s locations, has a mansion and employs thousands across the country.Khan’s story is not unusual. One of the things I enjoyed as chairman of the International Franchise Association was getting the chance to meet hundreds of people like Khan who have raised themselves from obscurity and become enormously successful thanks to franchise businesses.

Jim Amos Tasti D-Lite

Tasti D-Lite chairman and CEO Jim Amos has more than 30 years of experience guiding successful franchise companies such as Mail Boxes Etc.

Franchisees are the heroes of the American economy.

According to IFA’s Economic Impact of Franchised Businesses Vol. 3, which incorporates U.S. Census data, the franchise industry consists of more than 825,000 businesses that employ more than 9.1 million people. The total economic impact of the industry is $2.1 billion — 9 percent of the private output of the U.S. economy.

Going into business for yourself isn’t easy. It requires drive and determination in order to overcome numerous challenges such as dealing with regulations, cash flow issues and payroll. Franchising is powerful because it gives business owners the systems and infrastructure to help overcome those challenges.

When someone buys a franchise and succeeds, it impacts a community. I’ve seen people pray about it. They’re investing so much of themselves in the business — from a leadership perspective, it’s the largest burden they have. They want to create jobs and see their community thrive, and they want to demonstrate how people can be very successful by serving their community.

Starting a business requires a substantial investment and a lot of hard work, and it is not without risk. Thanks to the support of franchisors, more franchise businesses succeed compared to nonfranchised startup businesses. Franchise consulting company FranNet, which works with more than 200 brands, recently released a report showing that of the 1,260 companies it helped start in 2006, 85 percent were still operating five years later. The Census Bureau has reported that, overall, only 50 percent of small businesses are still operating after five years.

While franchising improves the odds for new business owners, they are still taking a risk — and the fact that franchisees are willing to take that risk is what makes them heroes. They are intent on building their own success by building a business. In the process, they lift those around them.

The IFA expects new franchises to create 168,000 jobs in 2012. The industry is putting people back to work, and it’s all thanks to people who are willing to dream big, and then work hard to make their dream a reality.

Tasti D-Lite chairman and CEO Jim Amos has more than 30 years of experience guiding successful franchise companies such as Mail Boxes Etc. He was inducted into the International Franchise Association’s Hall of Fame in February.

2 Trackbacks

  1. […] they provide a roadmap to success for people who are willing to work hard and bet on themselves. A blog that I wrote a few weeks ago pointed to one example: Aslam Khan moved to the U.S. from Pakistan and started out working at […]

  2. […] I told Greta, I think small business owners — and franchisees in particular — are heroes because they take risks by tapping into their life savings and assets to start businesses. The […]

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