Are you and your spouse looking to take control of your time and gain more flexibility with your schedules? Investing in a franchise business could be the perfect option. Franchise businesses provide entrepreneurs with the opportunity to own and operate businesses while leveraging the established networking and branding of an existing product or service. For a modest investment, you and your spouse can use existing resources and guidance to launch a successful franchise business. Here, the International Franchise Professionals Group (IFPG) provides answers to the frequently asked questions (FAQs) around cheap franchising.
Questions about Franchise Opportunity Costs
Starting a franchise business requires an investment in both money and time, and it’s important to make sure all aspects of the investment make sense.
Q. What are the initial costs associated with investing in a franchise?
A. The initial franchise opportunity costs can vary depending on the type of franchise business you’re investing in. The most common up-front costs include the franchise fee, any necessary licensing and registrations costs, supplier contracts and equipment as well as inventory.
Q. Can I use my savings to invest in a franchise business?
A. Yes, you can use your savings to invest in a franchise business. However, it’s recommended that you also explore other financing options such as loans, credit cards, crowdfunding or angel investing. Additionally, some franchisors may offer financing options for prospective franchisees.
Q. What is a franchise fee?
A. The franchise fee is a one-time fee that is paid upfront in exchange for the franchisor’s operating system, names, and trademarks. The franchise fee is usually a percentage of the total value of the franchise and can range from $20,000-$50,000, depending on the type of franchise.
Questions about Franchise Benefits
Franchise businesses offer many benefits that independent businesses may not be able to take advantage of. Understanding the available franchise benefits prior to investing can help you make the right decision for your business.
Q. What are the benefits of investing in a franchise business?
A. Investing in a franchise business offers many benefits including access to an established brand and customer base, use of an existing system and processes for operating the business, and a network of other franchisees who can provide you with advice and guidance. Additionally, you’ll be able to benefit from ongoing support and resources from the franchisor.
Q. How will investing in a franchise help me gain time freedom and flexibility?
A. Investing in a franchise business provides you and your spouse with the opportunity to own and operate a business that can give you more control over your time and schedule. With the support of the franchisor and other franchisees, you’ll have the flexibility to create a worklife balance that meets your needs.
Q. What ongoing support do I receive from the franchisor?
A. The level of ongoing support you receive from the franchisor is typically determined by the franchise agreement and the quality of the franchisor. Generally, franchisors will provide you with access to training materials, ongoing marketing resources, and additional support as needed.