Everyone knows that franchises pretty much run the fast food industry. But – believe it or not – franchised businesses have a massive impact on over 75 industries. Back in 2001, it was reported that there were nearly 800,000 franchise-based business establishments operating in just the United States. With a new franchise business opening every eight minutes.
But have you ever stepped back and wondered, “what would the world be like without franchises?” The world would no doubt be a drastically different place, but people may not realize just how big of an affect franchises have on our daily lives. To show our readers what the world would be like without franchises the WatchMeFranchise team has gathered the following top 10 list.
1 ) People Would Eat Healthier
It is no myth that eating at fast food franchises is unhealthy. As any one that has ever eaten a greasy pile of food from Burger King, or seen the movie Super Size Me, will probably agree. The reason their food is so unhealthy is that fast food franchises focus on producing good tasting food at an extremely fast pace. In order to get hot food to customers these businesses often merely heat up frozen foods that are filled with chemicals and preservatives for optimal taste with a short cooking time. Think about it, how long does it take you to cook a hamburger at home? Then think, how long does it take Carl’s Jr. to give you a hot six dollar burger?
2 ) People Might be Physically Less Healthy
Although people might eat healthier without fast food franchises, they would probably become less physically healthy. Why? Because fitness franchises have become one of top selling franchise industries over the past ten years. Curves and Gold’s Gym are two of the more popular fitness franchises, but there are also countless other gyms, Pilate studios, and fitness related franchise businesses. These franchises target the new health savvy clientele that has emerged in the last generation. But if these gyms and fitness centers were not easily accessible would these busy professionals still find time to run laps around a park near their home?
3 ) Even More Starbucks & In-N-Outs
Surprisingly these two extremely popular food service businesses are actually not franchised units. Every single Starbucks and In-N-Out Burger location is corporate owned in order to ensure the stores maintain their respective company’s high standards. This fact may come as a surprise to any one who has ever walked past eight Starbucks locations on a five block walk through Manhattan, but it’s true nonetheless. Therefore, if Starbucks can manage to open over 13,000 locations, with competition from other coffee franchises including It’s A Grind and The Coffee Beanery, imagine how many Starbucks there would be without any franchised coffeehouses!
4 ) Higher Unemployment Rates Worldwide
The franchise industry employs millions of people across the entire globe. According to estimates from 2004, franchised businesses provide over 18 million jobs in the United States alone. McDonalds alone has 31,000 restaurants worldwide, with many in developing and third world countries. These businesses provide job opportunities for people all over the world and encourage economic growth in certain areas.
5 ) Missing Beloved Characters and Catch Phrases
Look at the picture above. How many of those images do you recognize? The reason you know what most of them are is because fast food franchises use these characters and catch phrases so much in their marketing that they have become part of modern culture. How many times in your life have you heard the phrase “where’s the beef,” or “I’m lovin’ it?” Without the massive advertising budget that results from national expansion of a franchise, these companies would never be able to afford the marketing expenses to make these characters and phrases part of our culture.
6 ) Less People Would Own Businesses
The franchise concept has allowed millions of people across the world to open and operate their own businesses. Though people often think of the massive corporate giants like McDonalds when they hear the word “franchise,” there are actually over 1,500 different franchisors operating in the United States. These businesses offer regular people the opportunity to open a business with a business model that has already been proven successful. Without the ability to invest in a successful business many of these people would not be able to afford the high prices of opening a new business.
7 ) Lower Income Tax Returns
Roughly six out of ten people in the United State turn to tax professionals to prepare their income taxes. Why? Because the American tax system is extremely confusing and most people do not understand it. Therefore, they go to one of the numerous tax franchises to get their returns prepared. By going to tax franchises these people feel that they can get a better income tax return then if they had prepared the returns themselves.
8 ) Soda Might Not be as Popular
When people hear the word “franchise” one of the last companies that comes to mind is Coca-Cola. However, Coca-Cola not only uses the franchise concept but they were one of the major players in the development and history of franchising in the United States. Years ago Coca-Cola began using the franchising concept by producing flavored syrup and selling it to various bottlers whom held a Coca-Cola franchise. This method allowed them to increase their distribution while reducing their overall financial risk and lowering their distribution costs. Without franchising, Coca-Cola would not have been able to mass-produce their product and soda would not be nearly as popular as it is now.
9 ) People Would Look Much Paler
Though not as popular as they were at the end of the 90’s, tanning salon franchises are still lucrative and profitable businesses. These salons target the same type of busy professionals that many fitness franchises target, who probably wouldn’t have time to lay out in the sun for hours to get a tan. Just imagine what Hollywood would look like if celebrities did not have easy access to countless tanning salons.
10 ) Traveling Would be Much More Difficult
Hotels, car rental stores, and travel agencies are actually some of the strongest players in the franchise industry. By franchising their locations, the franchisors have helped increase the convenience of traveling. Without all these travel franchises going on a vacation would not be as convenient of a task as it is today.