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Trends and Facts About Computer & Internet Franchises
Related Computer & Internet Franchises Articles
- The market for computer services and repairs is principally small offices, estimated to generate $25+ billion in service demand, and has given rise to several well-known national franchises, like Nerds We Can Fix That! and Fast Teks – to name just a few.
- Computer franchises have proven themselves successful and poised for growth. In 2006, 1-800-905-GEEK was ranked #1 in Entrepreneur magazine’s “Top New Franchises” category and #82 in its “Franchise 500” list. The company has over 250 franchises in 33 cities in the U.S. and continues to open new franchises. Fast Teks was ranked #6 in the Franchise 500 Magazine in 2006 in tech category, and #385 in the overall “Franchise 500.”
- The Small Business Administration estimates that there are 2.8 million companies with 1-4 employees, 1.1 million with 5-9, and half a million with 10-14. Small companies are unlikely to have a salaried “IT” person on staff, but instead rely on service providers to perform essential functions, such as systems integration, troubleshooting, virus/worm removal, wireless networking, data back-up and recovery, and other services.
Another factor driving success for computer services and repair franchises is partnerships with large retailers, such as Best Buy, which uses the Geek Squad to service customers’ home computers.
- For the personal computer market, Forrester Research reports that home users are most likely to set up their own computers. But more than half of home users also think they’ll need professional help in the future, creating a market opportunity.
- The initial investment for starting up a computer services and repair franchise can be as low as $19,500 – a moderate cost for owning a business. These franchises can often be run from home, and the advantages of a franchise are plentiful.
First, there is brand recognition in a situation that requires trust. Franchisees also enjoy the added benefits of marketing support, and sometimes lead generation from a central call operation center.