Are you tired of your corporate career and want to transition to business ownership? Establishing a franchise business can be an excellent way for you to take control of your financial future. Franchising is the practice of using another company’s successful business model and brand to sell its products or services. It can be an especially attractive option for those looking to start a business with minimal risk and maximum support from an established franchisor.
The International Franchise Professionals Group (IFPG) is your one-stop shop for information about franchising. Whether you’re looking for assistance in finding the right franchise business for you or assistance with the investment process, the IFPG membership-based franchise consulting network can help. Our experienced franchise broker group members are here to guide aspiring business owners step-by-step through the process of identifying and investing in franchise businesses, all under the dedication of our purpose-driven mission based on integrity, ethics and collaboration.
To help you get started, we’ve gathered a list of the most frequently asked questions (FAQs) about franchising to help you gain an understanding of what’s involved.
FAQs about Establishing a Franchise Business
What is franchising?
Franchising is a business practice in which an individual or group of individuals, known as the franchisor, grants another individual or company, known as the franchisee, the right to market and sell its goods or services. The franchisee pays a fee, usually in the form of either an entry fee or royalty payments, to the franchisor in exchange for the right to market and sell the franchisor’s products or services.
What are the advantages of franchising?
Franchising offers a mix of advantages that traditional small business ownership does not. Franchisees benefit from purchasing a business that has an established track record of success, including a known brand, a proven business model, management personnel, and training and support systems. Franchisees also don’t have to handle all the responsibilities of starting a business from scratch, including product or service development, marketing, accounting, and human resources.
What are the requirements to become a franchisee?
There are no specific requirements for becoming a franchisee, but there are a few suggested traits that are helpful in becoming a successful franchisee. Much like starting any type of business, franchisees should have an entrepreneurial spirit, be organized, understand the importance of the franchisor/franchisee relationship, and have strong financial resources.
What are the steps in the franchise process?
The process of purchasing a franchise can vary depending on the franchisor, but the general process usually involves the following steps: research, find a franchise, submit an application, complete the franchisor’s application process, sign the Franchise Agreement, submit the application fees, and complete the regulatory review.
What type of businesses are available for franchising?
Virtually any type of business can become a franchise. Some of the most popular franchises include fast food restaurants, convenience stores, auto-repair shops, salons, laundromats, health clubs, and home improvement stores.
How do I find a franchise?
Researching available franchise opportunities can be an overwhelming and confusing task. The most important thing to remember is to perform thorough due diligence on any franchise you’re considering. The International Franchise Professionals Group (IFPG) is a membership-based franchise consulting network with more than 1,300 franchisors, franchise consultants, and vendor members who are here to help guide you through the process.
What are some considerations when selecting a franchise?
When selecting a franchise, it’s important to consider location, startup costs, and profitability potential. Additionally, you should make sure the franchisor provides on-going training and support, and is committed to helping you run the franchise successfully.
What type of assistance can I get from IFPG?
IFPG can provide assistance in navigating the franchising process, such as finding the right franchise for you, completing the franchisor‘s application process, and submitting any required fees. Additionally, IFPG offers ongoing guidance as you establish and grow your franchise business.