There are plenty of questions to ask when considering an investment in a franchise. These FAQs will ensure you’re making the most informed decision when choosing a business.
What is a Franchise? A franchise is a licensed agreement between a parent company (franchisor) and one or more independent contractors (franchisee). Franchisors provide all the tools and support that franchisees need to successfully open and operate a business.
What are the Benefits of Investing in a Franchise? The advantages of buying a franchise often outweigh those of starting a business from scratch. Franchises provide an established brand name, product distribution systems, training and support, and marketing. These benefits can help franchise-buyers get their business running more quickly.
What Types of Franchise Opportunities are Available? The IFPG provides its members with access to a wide array of franchise business opportunities in diverse industries, ranging from retail to restaurants to services. Franchises with IFPG members come in a variety of shapes and sizes, and generally include traditional options as well as home-based and turn-key systems.
What Costs are Associated with Investing in a Franchise? The costs associated with investing in a franchise vary widely. Generally, these include an initial franchise fee, ongoing fees, which may include royalty fees, and the costs associated with launching the business and purchasing the necessary equipment.
How Do You Choose the Right Franchise? Choosing the right franchise for you can be a daunting task. The IFPG prescribes that each of its members abide by a code of ethics, including discerning relationships, ensuring that proper due diligence is taken by each party, and acting as an ambassador for the systems that it represents. However, as a franchisee, you should still exercise caution in selecting a franchise that’s right for you.
What Resources are Available to a Franchise Buyer?
IFPG members are guided by a code of ethics to ensure that franchise buyers have all the necessary resources to make an informed decision when investing in a franchise. IFPG members provide guidance on franchise selection, legal documents and disclosure required by state and federal government, and access to coupons and special promotions.
Are There Any Financial Assistance Options for Prospective Franchisees? Many franchisors offer incentives and discounts to interested franchise buyers. Additionally, financial assistance may be available from the franchisor, as well as third-party lending institutions, such as banks and credit unions.
No matter what kind of franchise you’re considering, having the experience of the IFPG and its members to rely on will make the process easier. With the right support, you can find the ideal franchise opportunity for yourself and turn a career change into a successful business.