Multi-Unit Franchise Experts

Investment Franchise

FAQs for Starting a Franchise Business

On the fence about starting a franchise business? Aspiring business owners, rest easy. We have compiled a list of FAQs to help guide you in your journey. From understanding franchise fees, to scrutinizing the franchise agreement and navigating the challenges of running a business – our International Franchise Professionals Group (IFPG) team of franchise consultants can help you make the best decision for your career change.

Whether you are an entry-level professional looking to transition to a career in the retail industry or an experienced business owner thinking about investing in a franchise, our comprehensive list of FAQs will answer your questions and help you kickstart your journey into the world of franchise business ownership.

What is a Franchisor?

A franchisor is an entity that has developed a product or service that it licenses to franchisees. It usually includes the establishment of system-wide marketing plans, operational procedures, and training programs. The franchisor typically collects fees, royalties and other charges from its franchisees which are used to fund advertising, promote product awareness and provide customer services.

What are the Advantages and Risks of Franchising?

Franchising has its benefits and disadvantages. The advantages of franchising include a higher success rate due to an established brand, the ability to reduce costs associated with business start-up, and access to industry-specific training and support. The risks of franchising include having to pay ongoing fees to the franchisor, limited control of the business, and the possibility of being locked into an agreement that prevents franchisors from making certain decisions.

How Much Does a Franchise Cost?

The cost of a franchise can vary greatly depending on the type of business and the franchisor. Generally, start-up franchise costs include an initial franchise fee, an ongoing royalty fee, and additional expenses associated with equipment, supplies, and premises lease. Before investing in a franchise opportunity, it is important to understand all the associated costs.

What’s Included in the Franchise Agreement?

The franchise agreement is a legally binding document that sets forth the terms and conditions of the franchise-franchisor relationship. It outlines the franchise fees, royalty payments, duration of the agreement, territories covered by the franchise and details of the franchisor’s obligations to support the franchisee. It is important that the franchise agreement is thoroughly reviewed and negotiated before signing.

Can I Use the Franchisor’s Trademarks?

As a franchisee, you are granted a limited license to use the franchisor’s trademarks, such as their logo. However, you must abide by the terms of the franchise agreement and follow all of the franchisor’s rules and procedures when using any of their trademarks.

What Support Do Franchisors Provide?

Most franchisors provide a range of support services to their franchisees. This may include training, operational procedures, access to marketing resources, and ongoing assistance to ensure the business is running smoothly. It is important to make sure the franchisor provides adequate support to help you reach your goals.

What are the Legal Requirements for Operating a Franchise?

The legal requirements for operating a franchise vary by state and jurisdiction. It is important to research the legal requirements in your area. Additionally, you may want to consult a lawyer or accountant who is knowledgeable about the legal and financial aspects of franchise business ownership.

As you may have guessed, the franchise business opportunity comes with its own unique set of questions and concerns. Hopefully, the FAQs we have compiled above will help prepare you for the next steps in transitioning to a career in the franchise industry. The IFPG team is committed to supporting your success as an aspiring business owner and wishes you the best of luck in your journey!


Franchise Business,


Franchise Fees

Download your free copy!

And learn to evaluate franchise concepts like an insider.

Request a Franchise Evaluation