Franchising is a very popular method of doing business. Franchisees generated $803.2 billion in the sale of retail goods and services in 1992. According to an industry newspaper Franchise Times 76 percent of franchisees are satisfied and 73 percent would recommend franchising to others. As a small business venture, franchising offers the entrepreneur an opportunity to follow a formula for what has demonstrated itself to be a tried and true business.

While no business is without risk, franchising provides entrepreneurs with a business option that offers trademark, guidelines and a business format. There are advantages to the foundation provided in a franchise business. However, the owner does relinquish some autonomy by agreeing to follow guidelines established in the franchise agreement—which is a legally binding document.

The most common type of franchising is business format franchising, which in effect provides a blueprint for the building, promotion, operation and products and services of the business. The franchise investment may range be tens of thousands to hundreds of thousands of dollars. An up-front fee and a continuing royalty, based on percent of sales, are usually required as part of a franchise agreement. Product and tradename franchises are available, such as auto dealerships.

Before you decide to make your mark as an entrepreneur, learn more about franchising. Sources of information on franchising are abundant. The sources described below can help you make an informed decision about franchising as your avenue toward entrepreneurship. If you are on the Internet, you can go direct to many information sources and simply download and print information of interest to you. Take a look at http://www.smallbusiness.apple.com and visit the SCORE Hot Page where you can find the article "A Look At Franchise Business."

The Federal Trade Commission is a source of information, forms and regulations that affect franchising. Call the Federal Trade Commission, Public Reference Branch (202) 326-2222, stay on the line for an information specialist—do not enter the information menu system for this item—request a free copy of the pamphlet "A Consumer Guide To Buying A Franchise." Use the information menu system for consumer credit information, copies of consumer education brochures and information about franchising. Franchising information available includes: access to federal disclosure requirements for franchises, a copy of a federal disclosure for a specific franchise, information on complaints on file, as well as information about filing a complaint. You can also access the commission’s web site at http://www.ftc.gov.

The International Franchise Association is a trade association for both franchisors and franchisees. They have franchise resource books that are sold to the public for fees ranging from $15-$95 dollars. The association offers franchisees’ seminars, networking opportunities and "how to" information. You can access franchise information, as well as information about the association itself at http://www.entremkt.com/ifa or call (202) 628-8000.

The American Association of Franchisees & Dealers is another trade organization available to you. Formed in 1992, the organization has Trademark Chapters, which represent all of the franchised systems in which they have significant membership. The organization offers members publications, discounts and a professional referral network. You can access franchise information and association information at http://www.aafd.org.

Once you have gathered information about franchising, you need to evaluate the information and form opinions. Sign up for  counseling for  free and confidential assistance in evaluating what's best for you.