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Franchising for Investors – More Time with Family

Every aspiring business owner interested in franchising dreams of run a successful business and spending more quality time with family. Understanding the definition of franchising is one of the most important steps in the franchise investing process. The International Franchise Professionals Group (IFPG) is here to provide answers to the most frequently asked questions about franchising definition.

From the critical role franchisors and franchise consultants to the expected time frame, the IFPG franchise broker group breaks down the basics so entrepreneurs can make informed franchise investments. We highlight some of the key takeaways from investing in a franchise and why they should consider taking this path to business ownership.

What Is Franchising?

To put it simply, franchising is a business model in which the franchisor (the business that owns the intellectual property and brand) transfers rights to a franchisee (the business owner) in exchange for a fee and ongoing royalties. It is a collaborative relationship that offers both the franchisor and the franchisee numerous advantages.

For franchisors, franchising makes it possible to expand their brand and reach new audiences without having to set up their own physical locations. Meanwhile, franchisees benefit from having access to established trademarks, a ready-made customer base, and a support system that will help them make informed business decisions. Additionally, franchisees get the added responsibility and independence of owning and managing their own business, but without the heavy cost and risk associated with start-up businesses.

What Is the Role of the Franchisor?

The role of the franchisor is to provide the franchisee with the tools, training and support necessary to replicate the franchisor’s successful business model. This includes providing standardized brand recognition, a complete operations manual, access to exclusive suppliers and vendors, ongoing educational opportunities, and marketing and advertising assistance as needed.

The franchisor also provides franchisees with an environment of camaraderie, collaboration, and an expectation of mutual respect. This helps create positive working relationships, and in turn, encourages franchisees to seek advice and guidance when needed.

What Is the Role of the Franchise Consultant?

Though not required, franchisees often look to certified franchise consultants to evaluate their franchise opportunities and provide tailored business advice. A franchise consultant works as an independent business advisor and mentor to provide impartial and unbiased guidance to prospective business owners.

Franchise consultants typically guide their clients through topics ranging from selecting the right franchise, financial consulting, and the development of a written business plan. Franchise consultants are typically up-to-date on key industry topics such as legal aspects of franchising, contractual requirements, and traditional and alternative funding sources.

How Much Time Is Required to Invest in a Franchise?

The amount of time it takes to invest in a franchise varies greatly based on the specific franchise. Some franchises require a more hands-on approach, while others may require fewer resources. Traditionally, more time is required upfront during the educational and evaluation process, and ongoing management responsibilities typically begin shortly after the franchise is purchased. The time frame usually ranges from six months to one year.

Ultimately, franchising is an ideal business model for those who are seeking to invest in something they are passionate about and who want to spend more time with friends and family. Not only can franchising lend stability to one’s professional life; it can also offer a sense of satisfaction from knowing that you’re providing valuable service to others.

Topics:

franchising,

franchise investing,

spending time with family

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