So you want to start a franchise and you’re wondering if California is the right state to open in. Well, you've asked a great question. The answer is a resounding yes! Why? For one, California is the largest economy in the US and is the 5th largest economy globally. And franchises do particularly well in California. Not just the big names like McDonald's, 7- Eleven and Subway, but also local favorites like Jack in the Box and In-N-Out Burger. Are you still skeptical? That's ok. Here, we'll review the demographics, the culture and the regulations that make California the state to start your business.
California is the most populous state in the nation. It is also the second most diverse state in the US. That means that there will be plenty of consumers for you to target regardless of whether your product is niche or universal. Beyond a large and diverse population, California also has one of the highest median Household Income levels (HHI) of all states. While it may not be an all out gold rush, a large population with lots of income is a great sign for a potential business owner.
Another unique aspect about starting a franchise in California is the culture. California's culture of consciousness for the environment, health, technology and values make it a great place to live, work, play and, most germane, start a business. This is obvious when you look at the number of start-ups and the amount of venture capital in the state. Additionally, organizations like the California Office of the Small Business Advocate (CalOSBA) and the California Association for Micro Enterprise Opportunity (CAMEO) can help you with starting, training, and funding for your business.
Regulations on franchisors that protect franchisees also make California a smart place to start your franchise business. That's because the Department of Financial Protection and Innovation (DFPI) have gone above national standards relating to keeping the franchisee informed and protected prior to and after purchase. And any franchisor doing business in the state must register their business with DFPI.
All these factors and many more should be taken into consideration before you purchase a franchise. Doing your due diligence is a must if you want to be successful. Reviewing FDDs with a lawyer and an accountant is also paramount. Nonetheless, for the reasons listed above and a whole host of others, California can be the place where your dreams of successful entrepreneurship come true. And there's not a lot of better places in the world to be a success story. Which of the franchises below will be the best supporting character in yours?
