The journey of being a stay-at-home parent is an admirable and challenging experience. After a few years of taking care of children and building a home-based career, many stay-at-home parents look to the franchise market as a way to re-enter the workforce on their own terms. To get the most out of an investment in a franchise opportunity, it’s important to understand the questions common to the process. Here, we outline the frequently asked questions (FAQs) about popular franchise investments in an effort to provide an understanding of what to expect and how to navigate the process with confidence.
Starting a franchise can be a very rewarding experience, but it can also be a difficult journey, especially for inexperienced entrepreneurs. Many stay-at-home parents lack the necessary knowledge to get the most out of their investment and may make costly mistakes. That’s why consulting with the International Franchise Professionals Group (IFPG) is essential. The IFPG is a membership-based franchise consulting network with more than 1,300 franchisors, franchise consultants and vendor members. Together, they offer professional insight to guide aspiring business owners through the process of identifying and investing in franchise businesses. Through their purpose-driven mission of integrity, ethics and collaboration, they provide the necessary information to make the best decision for you and your family’s future.
The following are the most commonly asked questions (FAQs) for popular franchise investments, as well as the answers we provide at the IFPG.
FAQs Regarding Franchisors
1. What should I look for in a franchisor?
The best franchisors provide excellent support to their franchisees. They have a proven history of success, and have established policies and procedures to guide franchisees on how to run their business. They offer comprehensive training and continuing education opportunities to ensure franchisees have the resources and support to be successful.
2. How do I select a franchisor?
When selecting a franchisor, look for one that provides comprehensive and on-going support to its franchisees. Ask franchise owners about their experience with the franchisor. It’s also important to evaluate the financials of the franchisor and the industry in order to make an informed decision.
3. What information should I ask a franchisor?
When considering a franchise opportunity, it’s important to ask the franchisor questions about their product or services, the ongoing support they offer to franchisees, the fees and costs involved, the profit potential, the legal aspects of the franchise, and the franchisor’s experience and track record.
FAQs Regarding Financing
1. How do I get financing for a franchise?
Most franchisors offer financing programs for franchisees, which may include options like The Small Business Association (SBA) loan, microlending, angel investors, family or friends, and traditional lenders such as banks or credit unions. Each type of financing carries different risks and rewards, so it’s important to do your research before committing to a loan.
2. How do I decide if I should use a traditional lender?
Traditional lenders such as banks and credit unions are great resources for financing a franchise, but they often require specific qualifications and a long list of paperwork. Before applying, make sure you understand the qualifications and the process. If you don’t meet the requirements or don’t want to deal with lengthy applications, you can explore alternative financing sources.
3. Are there any other resources I can use to fund my franchise?
Yes. Many franchises offer special financing programs, such as The Small Business Administration (SBA) loan, microlending, angel investors, family and friends, and more. It’s important to do your research and explore all of your options when financing a franchise.
FAQs Regarding Regulations
1. How do I stay compliant with state and federal laws?
It’s important to stay compliant with all state and federal laws, including labor and tax laws. The process can be complex and time-consuming, and requires researching the laws and regulations for your specific state, industry, and type of business. The IFPG can help with this process, providing assistance with navigating complex regulations.
2. How are franchise relationships governed?
Franchise relationships are governed by various agreements between franchisees and franchisors. These agreements typically include the franchise agreement, which outlines the responsibilities of each party. in addition, there are typically regional or local contracts, non-compete agreements, disclosure documents, operating manuals, and more.
3. What other legal aspects are associated with investing in a franchise?
When investing in a franchise, it’s important to understand the legal aspects involved. This includes being familiar with the franchisor’s policies and procedures, trademark agreements, non-compete agreements, lease agreements, franchise disclosure documents, employment laws, taxes, and other regulations. Consulting with the IFPG can help with understanding and navigating these legal aspects.
Franchising offers stay-at-home parents a great opportunity to re-enter the workforce in a flexible and rewarding environment. While it’s an exciting and promising investment, it can also involve numerous pitfalls and complexities. In this article, we outlined the frequently asked questions (FAQs) about popular franchise investments to help stay-at-home parents understand the process and make the most of their investments. We also highlighted the services offered by the IFPG, a membership-based franchise consulting network to help entrepreneurs identify and invest in the right franchise opportunity.