Retirement from a successful career marks an exciting chapter of life. You’ve accumulated wealth, and if you’re like many retirees, you’re looking for ways to reinvest your time and money while keeping yourself busy and engaged. Investing in a franchise could be the perfect for you. Whether you’re looking for an active hands-on role, or prefer more of a passive, hands-off option, the International Franchise Professionals Group (IFPG) can provide the guidance, resources and assistance for your franchise venture.
To help you understand the franchise investment process, we’ve compiled a list of frequently asked questions (FAQs) about where to find franchises for sale and what to expect in terms of training, licensing, overhead, and potential profits.
Where Do I Start Looking for Franchises?
The sheer number of franchises available can make the first step — finding a business that the right fit for you — a bit daunting. The best first step is to contact IFPG for a complimentary consultation. Our members, which include more than 1,300 franchisors, vendor members and franchise consultants, have access to comprehensive market research and resources that can help you find the perfect business opportunity. We work closely with each of our clients to determine their financial goals, work style, risk tolerance, and experience level, in order to narrow down the search. The IFPG team will provide input and advice along the way and even assist with paperwork and negotiations.
What Kind of Documentation Do I Need?
When you’ve identified the business you want to buy, it’s important to equip yourself with the best documents to help guide your decision making. IFPG’s experienced consultants are available to help you gather the information you need. Starting with the Franchise Disclosure Document (FDD), you will also need to look into Franchise Agreements, Lease Agreements, and Terms and Conditions.
What is the Process of Buying a Franchise?
Each franchise is unique in terms of the exact buying process, however, there is a general sequence. The steps include:
- Hire a personal attorney
- Review the FDD
- Request financial and operational information
- Identify potential locations for your franchise
- Conduct discovery day
- Finalize the process
- Sign the franchise agreement
IFPG’s team of experienced professionals will be with you throughout the process and provide comprehensive advice and support.
How Much Money Do Franchises Cost?
The investment in a franchise depends on the specific business and the type of franchise agreement you choose. Typically, upfront franchise costs will range from a few thousand to a few million dollars. The investment cost will include purchase fees, training and licensing fees, equipment and property, operational costs, and advertising fees.
What Training and Licensing Requirements are There?
The franchisor should provide all the necessary training and licensing for you. The details of training and licensing will vary depending on the type of franchise and agreement you choose. Along with the upfront fees, franchisors often charge franchisees a training fee and carry out a background check.
What is the Risk Level of Investing in a Franchise?
Any investment carries with it certain risks, especially when running a business. But investing in a franchise with the help of a franchise consultant group such as IFPG has much lower risk than launching an independent business from scratch. Franchisors typically provide support with marketing, operations, IT, and other areas of the business to give franchise owners the best chance of success.
What are the Potential Profits of a Franchise?
The profit potential of a franchise depends on many variables such as your skills, the industry, the franchisor, the regional market, and how much time and effort you are willing to put into the business. For some franchises, the return-on-investment is quite quick; for others, it may take up to several years to become profitable. At IFPG, our consultants are willing to share real numbers and insights into franchise performance, as they have access to extensive and confidential market research and resources.