Backed by the International Franchise Professionals Group (IFPG), the franchise sector has been growing exponentially every year. The lucrative opportunities available to entrepreneurs make it a smart investment choice for stay-at-home parents looking to re-enter the workforce on their own terms.
With a low cost of entry and decreasing startup risk, franchised businesses provide a variety of options for any budget or background. However with so many available opportunities, a key question arises: what are the best franchises to own? In this comprehensive guide, we’ll discuss the most important factors to consider when selecting a franchise, why franchises are increasingly becoming a popular option, and frequently asked questions when it comes to owning a franchise.
Why Franchised Businesses Are Becoming Popular
Franchised businesses are becoming increasingly popular for a variety of reasons. Perhaps the most attractive is the cost of entry; while traditionally starting a business from the ground up could require hundreds of thousands of dollars or more, with a franchise, the cost may be as low as a few thousand dollars in some cases.
In addition, the risk for potential failure is low. Many franchisers provide ongoing support, from helping with the operations of the business to providing insight on how to generate customers and, in some cases, even providing marketing assistance.
Important Factors to Consider When Selecting a Franchise
When selecting a franchise, the most important factors to consider include:
* Start-up Expenses: To help ease pressure on managing cash flow, it’s important to ensure the franchise has reasonable start-up expenses.
* Management Experience: For a successful franchise, it’s important to have a management team with significant experience in the industry.
* Desired Level of Control: When selecting a franchise, decide how much control you’d like to have. Franchises with a high degree of control may offer strong support, while those with limited control could be a less stressful option.
* Location: Where is the franchise located? Consider not only the location itself, but also if the area has a growing demand for the franchise’s particular products or services.
* Overall Demand: Analyze the industry to determine if there’s an overall demand for the particular franchise.
Frequently Asked Questions
When selecting a franchise, there are certain questions to consider that will help make the decision process easier:
* What is the initial franchise fee?
* What are the ongoing fees for franchise ownership?
* Are there any additional fees involved?
* What type of training and support will be provided?
* How long does the franchisor’s approval process typically take?
* Are there any ongoing obligations of a franchisee?
* What are the regulations for owning a franchise?
* Are there any restrictions on franchising a specific geographic area or market?
* How long has the franchise been in operation?
* What services or products is the franchise well known for?
The answers to these questions will provide aspiring business owners with a better indication if owning a franchise is the right choice for them.
For stay-at-home parents interested in re-entering the workforce on their own terms, franchised businesses remain one of the most accessible and sensible investments. Through this comprehensive guide, we’ve explored the most important factors when selecting a franchise, why franchising is an increasingly popular option, and a few frequently asked questions to consider.