Multi-Unit Franchise Experts

A successful franchisee standing in his new coffee franchise location

Franchise Advice for Career Changers

Nine-to-five employment is not for everyone. If you are feeling dissatisfied with your current job and want to make a significant career change, you may have considered investing in a franchise. But before you commit, you have some questions about what it takes to become a successful franchisee. You are not alone. Every new franchise investor has lots of questions. We’re here to help answer them.

Franchising is a $2.3 trillion industry, with nearly 830,000 franchise businesses in the United States alone. More than 40 percent of family-run businesses are franchises. Millions of people around the world have found financial success by investing in a franchise.

So, what is a franchise? A franchise is a business relationship in which the franchisor (the company granting you the right to operate a franchise) authorizes the franchisee (this is you) to do business under their established brand name and with their operational models, which they provide you with. Some examples of franchises include restaurants, hotels, retail stores, real estate, home health care, and many more.

The International Franchise Professionals Group (IFPG) is a membership-based franchise consulting network with more than 1,300 franchisors, franchise consultants, and vendor members. We work with a variety of aspiring franchise owners to identify franchise businesses and navigate the confusing process of selecting, investing in, and operating a franchise.

Still unsure if franchising is right for you? Here are the answers to the most common questions we hear about franchising:

Q: What are the main benefits of investing in a franchise?

The primary benefit of investing in a franchise is that you can start your own business without the worry of building a brand from scratch. Franchisees receive assistance with marketing, training, support, and more from the franchisor. You also get to benefit from a proven business model that has been successful in the past.

Q: How much does it cost to invest in a franchise?

It depends on the franchise you choose. Some franchises require an upfront investment of anywhere from $50,000 to more than $1 million. Other franchises require an ongoing royalty fee, which can be anywhere from 5 to 8 percent of your gross sales.

Q: What should I look for when considering a franchise?

The first thing you should consider is the franchisor’s track record. Do they have any market test data and success stories from their existing franchisees? Also look at their training and support programs, as well as their fees and requirements. Be sure to review the Franchise Disclosure Document (FDD) that outlines all the rights and restrictions of a franchise agreement.

Q: What are the risks involved in investing in a franchise?

No business investment is without risk. However, when you franchise appropriately, the risk of starting a business is greatly reduced because you’re working with a proven system. That being said, make sure to carefully review the FDD and perform due diligence to understand what you are signing up for.

Q: What industries are a good fit for a franchise?

The retail industry is an excellent fit for franchising, as it is a highly competitive field with a wide variety of business opportunities. If you are interested in the hospitality industry, there are also many successful franchises that provide services such as inns, hotels, restaurants, and event venues.

At the International Franchise Professionals Group (IFPG), our mission is to help aspiring business owners find the right franchise investment opportunity and get the support they need to become successful franchisees. We invite you to reach out to us if you have any questions or would like to learn more about franchising.

Topics:

Franchise,

Franchisor,

Franchisee

Download your free copy!

Explore multi unit franchising opportunities and uncover the mysteries of franchising in this e-book.

And learn to evaluate franchise concepts like an insider.

Request a Franchise Evaluation