When it comes to franchising and spending more time with family, questions abound. Aspiring business owners are often unsure about the steps to take when starting a franchise business, the process of identifying the right franchise opportunity for them and their family, and the resources available to help guide their journey. The International Franchise Professionals Group (IFPG) provides franchise advisors and potential franchisees with the guidance and resources they need to make informed decisions when starting a business. In this article, we’ll look at the top Frequently Asked Questions (FAQs) about franchising and spending more time with family, and explore the answers to those questions that will help aspiring entrepreneurs make the right decision for their families and their goals.
What is Franchising?
Franchising is a form of business ownership where the franchisor provides the franchisee with a business system and ongoing support. The franchisee pays a fee in exchange for using the franchisor’s brand name, business system, knowledge, proprietary processes, and other benefits. The franchise model produces many benefits for franchisees, such as access to a well-known brand, reduced risk through proven processes, and marketing and operational support from the franchisor.
What is Included in the Franchise Agreement?
The franchise agreement is a legal document that establishes the relationship between the franchisee and the franchisor. It outlines the responsibilities of both parties and the terms of the relationship. The agreement will usually contain clauses that specify the franchise fee payment, royalty fee payment, the scope and duration of the franchise agreement, the rules and regulations that must be followed, the franchisor’s rights and obligations, and more.
What is the Franchise Disclosure Document?
The Franchise Disclosure Document (FDD) is issued by the franchisor to provide full disclosure of all relevant information about the franchise opportunity. This includes financial information, details about the franchisor’s background and legal history, the terms of the franchise agreement, and more. Every franchise is subject to a minimum disclosure requirement but the actual number of items to be included in the FDD can vary depending on the specific franchise. It is important that a potential franchisee review this document carefully to ensure that they understand all aspects of the franchise business.
How Do I Choose the Right Franchise for My Family?
Choosing the right franchise for your family is a decision that should not be taken lightly. There are several factors that should be taken into account, such as the amount of capital investment, the franchise fee, the level of operational support, the potential market for the product or service, the availability of resources, the franchisor’s reputation, and more. It’s important to conduct thorough research, compare different franchise opportunities, and fully understand the cost involved and the potential for return on investment.
What Other Resources Are Available?
In addition to the resources available from the franchisor, the Global Franchise Team offers a Franchise Resource Guide and Free Franchise Research Tool. This comprehensive guide includes helpful information on Franchise fees, territory restrictions, franchise system requirements, franchise agreement terms, royalty fee structures, and other resources. Additionally, the IFPG’s free franchise research tool offers prospective franchisees a unique resource for comparing franchises and performing comprehensive research.
How Do I Find a Qualified Franchise Consultant?
Finding a qualified franchise consultant can be one of the most important steps to take in the process of franchising. The IFPG offers a global network of franchise advisors, with more than 1,300 franchisors, franchise consultants and vendor members. When looking for a franchise consultant, make sure to investigate their qualifications, experience, and success in the franchising industry. You should also make sure to ask for references and review those as part of your decision-making process.
What Skills and Qualifications are Needed to Invest in a Franchise?
There are certain skills and qualifications that franchisors look for when considering whether to accept an investor in their franchise system. These qualifications may include the ability to understand and follow the franchisor’s particular business system, financial resources to invest in the business, a strong work ethic, and a passion for the business that is being franchised. Additionally, franchisors may also want to see management experience and the ability to manage a team of employees.