Franchising is a method of doing business where the buyer (the franchisee) runs a business by using the system and trademark of the seller (the franchiser or franchisor) or running one’s business by duplicating the success formula of the franchisor.

Franchising has become one of the most popular forms of business venture in the last couple of decades. It is estimated that a new franchise business opens in the United States every eight minutes. There are now over 750,000 franchise businesses operating in the country.

The popularity of franchising is due largely to the many advantages it offers. Primary among which is the relative ease that one can start a franchise business. It is almost foolproof because it is based on a business model that has been proven to be profitable. There is much less risk involved than starting a business with an unproved concept. So for those of you who wish to start a business but are somewhat risk averse, then a franchise business could be just what you’re looking for.

So as not to mislead or disillusion you, franchising also has its fair share of cons and disadvantages. First of all, since you are buying an existing business model, you cannot be 100% independent and creative because you can’t divert from the operation manual and would have to follow the contract to the last letter. Also, as a franchisee, you are required pay a royalty fee based on a certain percentage of your monthly sales.

Franchising offers more benefits over starting your own business. But you have to do your homework before buying a franchise. Although franchisers have done most of the work for franchisees, there are many things to consider first and things to do: research, test marketing, etc..

Some of the services that franchisers extend to franchisees are product or service support, proven business strategy or models, business advice, sales and promotion, selection of viable location, training, operations support especially during start-up, exclusivity of territory or location to avoid conflict with other franchisees and many other services.

The crucial part is finding out which franchise business to buy. There is a wide variety of choices, any business opportunity you can think of in fact, from foodstuffs to car accessories and from laundry services to child daycare facilities. You have to know where your interest lies. As in any business, you should be interested or even passionate about your business. So choose the type of product or service that you are genuinely interested in.

Franchise business opportunities are available everywhere—newspapers, flyers, brochures, directories, and of course over the Internet. You have to screen these opportunities also and make sure that you are dealing with reputable and not fly-by-night companies. Recommendations from existing franchisees are also important.

Food-related franchise businesses are the fastest growing segment of the industry. For good reasons too, because food consumption never goes out of style, people have to eat. Food stalls, snack bars, and restaurants have mushroomed everywhere. Thus, the food franchise segment has become intensely competitive. If you want to enter this market, you have to make sure that what you have to offer is truly unique.

Service franchises are widely popular also. Its biggest attraction is that it can be run from home. The most in demand service franchise is home cleaning and baby-sitting. You can even surpass your monthly earnings in your office job by doing these odd jobs, which are really rewarding.