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201 GREAT IDEAS for Your SMALL BUSINESS, Third Edition by Jane Applegate

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GREAT 35 IDEA: Consider Buying a Franchise

Franchising in the United States is a $2.3 trillion-a-year industry employing about 21 million Americans. Franchise companies offer thousands of different businesses, from janitorial services to beauty salons to business coaching.

Between 2001 and 2005, the franchising sector expanded at a faster pace than many other sectors of the U.S. economy. Direct economic output of franchised businesses grew by over 41 percent, while economic output of all businesses grew by 26 percent, according to the International Franchise Association (IFA).

The number of franchised establishments grew by 18.5 percent compared to 15.9 percent for establishments created by all businesses.

But operating a franchise is not for ...

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