Multi-Unit Franchise Experts

Invest in Franchises

Investing in a Franchise

For an ambitious businessperson, investing in a franchise offers many advantages – not least, the potential for more time with your family and loved ones. Working with a franchise consultancy firm such as the International Franchise Professionals Group (IFPG) that brings together more than 1,300 franchisors, franchise consultants and vendor members can make the process easier, since you’ll have access to resources, support and a wealth of expertise.

In this comprehensive guide, we answer some of the most common questions asked by an aspiring business owner seeking to invest in a franchise.

1. What Are the Advantages of Investing in a Franchise?

Investing in a franchise can offer great financial benefits, as well as the potential for a flexible lifestyle. Franchisees typically benefit from an easy-to-follow business model, a proven track record, established brand recognition and marketing support. Business opportunities are often cheaper and easier to get started than other forms of business, and franchisors can provide a wealth of resources and support to help you with the process.

Perhaps the most attractive benefit for many aspiring business owners is the potential lifestyle choice that comes with investing in a franchise. By investing in a franchise, you can make your dream of becoming a business owner a reality while still spending time with family. In fact, one survey of franchise owners by the International Franchise Association found that 45 percent of franchise businesses are owned and operated by couples or family members.

2. What Is the Process for Investing in a Franchise?

Whether you’re looking to start a new career as a franchisee or grow an existing business, the IFPG’s franchise broker group can help guide you through the process.

The typical process involves six steps:

  • Research: You’ll need to research your options and identify the franchise opportunities best suited to you.
  • Franchise Evaluation: Once you have identified potential franchise opportunities, you can evaluate their potential for success.
  • Preliminary Application: You’ll need to submit the preliminary application form included in the Franchise Disclosure Document.
  • Due Diligence: The due diligence process requires you to assess the financials, operational models, and legal and business documents of the franchise.
  • Financing: Having established that the franchise opportunity is real and viable, you’ll need to arrange the necessary financing.
  • Licensing and Training: Once financing is in place, the last step involves obtaining the necessary licensing and training to operate the franchise.

The IFPG’s trained and experienced service providers can help you with every step of this process, providing you with objective advice, service and information you can trust.

3. What Questions Should You Ask When Evaluating a Franchise?

When considering a franchise, some of the most important questions to ask yourself include:

  • What kinds of financial resources will you need to invest in the franchise?
  • How will you fund the franchise?
  • Does the franchise provide support and training?
  • What is the franchise’s track record?
  • How has the franchisor performed in the past?
  • What kind of operations and management support does the franchisor provide?
  • What kind of marketing materials or assistance will you receive?
  • What kind of access do you have to the franchisor’s network of distribution and suppliers?
  • What are the costs to join and operate the franchise?
  • What kind of market is the franchise in?
  • Who are the franchisees?
  • Is there an existing customer base?
  • What kind of margins are present?
  • What are the contracts and terms of the franchise?

Making sure you understand all of the terms and conditions of the franchise is essential when making an investment decision. Working with a team like the IFPG can help you navigate the evaluation and due diligence process, so you can find the right franchise opportunity that meets your lifestyle and personal goals.

4. How Can IFPG Help?

At the IFPG, our mission is driven by integrity, ethics and collaboration. With more than 1,300 franchisors, franchise consultants and vendor members, our innovative programs and training can help you find the best franchise opportunity to invest in.

Whether you’re looking for answers to the questions above or need assistance gathering the necessary documents and paperwork, IFPG members are here to provide guidance and support throughout the franchise buying process.

Topics: Investing in Franchise; IFPG; Franchise Consultancy; Family Fun; Franchising Business; Franchisee

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