Multi-Unit Franchise Experts

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Franchises for Stay-At-Home Parents

When a stay-at-home parent is considering re-entering the workforce, the option of franchise ownership is one of the most attractive. A franchise business can offer the opportunity to be independent while also enjoying the resources and support from the franchisor. However, there are many questions that come up when exploring this option. Here, we provide answers to the most commonly asked questions to help guide stay-at-home parents looking to invest in a franchise.

What Is a Franchise?

A franchise is a business that is owned and operated by an individual, but it is associated with a larger company. The larger company provides support to the franchisee in the form of products, services, and forums as well as proprietary information and training. By affiliating with the larger company, the franchisee gets to operate under a recognizable brand as well as benefiting from the company’s experience in the marketplace.

Is Investing in a Franchise a Good Option?

Yes, investing in a franchise can be a good option for those looking to become re-acquainted with the workforce. It provides the independence of owning your own business, but you are part of a larger system with the support and resources of a larger company. It also provides the opportunity to learn and grow in the business arena, as many franchisors offer training and resources.

Are There Different Types of Franchises?

Yes, there are many different types of franchises. Some of the most popular include food franchises like McDonald’s, Subway and Dunkin’ Donuts; service franchises including house cleaning, landscaping and pest control; and retail franchises that offer products from Nike, Starbucks and 7-Eleven. Additionally, some companies offer home-based franchise opportunities and customizable franchises.

What Do I Need to Know Before Investing in a Franchise?

There are several things you need to consider before investing in a franchise, such as the investment costs, franchise fees, location and competitive landscape. Additionally, you should research the franchisor’s corporate history, marketing and promotional activities, and identify their unique competitive advantages. It is also important to understand the franchise disclosure document thoroughly and do some due diligence on the franchisor’s financials and operations.

What Support Will I Receive From the Franchisor?

The amount of support you receive from the franchisor depends on the franchise. Generally, the franchisor will provide resources such as training and marketing materials as well as other resources such as operational implementation, customer service assistance and inventory management. Additionally, many franchisors provide ongoing support in the form of regional meetings and conferences, conference calls and webinars, and access to online library resources.

Are There Tax Benefits to Investing in a Franchise?

Yes, there are tax benefits to investing in a franchise. Depending on the type of franchise, a franchisee may be eligible for various deductions, such as the cost of the franchising fees, advertising costs, travel expenses, and the cost of producing marketing materials. Additionally, start-up costs incurred prior to the establishment of the business, such as costs associated with researching franchises, may also be deductible.

What Are the Risks of Investing in a Franchise?

The biggest risks of investing in a franchise include improper management of the franchise, not being able to make a profit, and not properly executing the franchise’s marketing plan. Additionally, the franchisor’s success and vision may not match that of the franchisee, which can lead to tension and dissatisfaction. Lastly, there is the risk that the franchisor may not live up to their obligations, which can lead to financial losses.

What Are the Pros and Cons of Investing in a Franchise?

The pros of investing in a franchise include the ability to work for yourself, access to the brand’s established name and customer base, and the support of the franchisor. Additionally, it provides an opportunity to learn and grow in the business arena and it can be a lucrative investment. On the other hand, the cons include the upfront and ongoing costs, the risks of improper management or execution of the marketing plan, and possible tensions with the franchisor as well as financial losses if the franchisor fails to fulfill their obligations.




Stay-At-Home Parents

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