Multi-Unit Franchise Experts

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Guide to Transitioning from Corporate Career to Franchisee

Are you feeling unfulfilled in your current corporate career and looking to make a change to franchise ownership? Are the unknowns of running your own business keeping you from making the plunge?

Our team at the International Franchise Professionals Group (IFPG) are here to guide you to a successful transition! In this article, we’ll answer some of the most commonly asked questions surrounding franchise ownership to help you make an informed decision.

Before we dive into what franchising is and what questions to ask, it’s important to first understand the difference between a franchise business and just simply starting a business from scratch.

What is Importance of Franchising?

Franchising is a legal and commercial arrangement between two parties, where a franchisor grants a franchisee the right to operate business under a brand name, use the franchisor’s specialized business processes and marketing plan. Unlike starting a new business, however, this arrangement provides the franchisee with access to proven strategies, processes and systems that can help make their business successful.

Questions to Ask Franchisors

When considering investing in a franchisor, there are several important questions you should pose to them to make sure it is the right decision for you. Such questions include:

What areas are available for franchise ownership? – It’s important to make sure there are available franchise territories within your desired geographical area.

What training and support will be provided? – You want to make sure the franchisor will provide the necessary training and support you need to run your business.

What are the fees associated with the franchise? – Fees can include a range of things such as initial franchise fees, royalty fees, advertising fees, etc. It’s important to make sure you are aware of and comfortable with all associated fees before investing.

What are the estimated startup costs? – This will vary, but you should be aware of both upfront and ongoing costs related to starting a franchise.

What kind of marketing will be provided? – Knowing what kind of marketing support you’ll receive from the franchisor will help you to determine how successful you’ll be in promoting your business.

What are the financing and/or investment opportunities? – Different franchise opportunities will offer different financing and/or investment options, so it’s important to understand what is available before making a decision.

Research Your Industry thoroughly

Once you’ve identified the franchises you are interested in, it is important to do thorough research on the industry and the market demand for the characteristiscs that particular franchise offers. Research helps ensure that the franchise you are considering will be profitable in the long run and that there is enough customer demand for the services or products that the franchise provides.

Questions to Ask Franchisees

Connecting with current or past franchisees is an important part of the research process. Asking questions will help you identify potential risks and rewards. Questions to ask franchisees include:

What did you like most and least about the franchise?

Has the franchise been successful for you?

What tips can you share for running the franchise?

What have been your biggest challenges and successes?

Posing these question to both the franchisor and franchisees will help you to make an informed decision about investing in a franchise.

Topics:

Franchising,

Franchise Ownership,

Franchisors

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