The retail industry has created a number of options for those looking to start a business. Franchise opportunities have become an increasingly appealing option for those who wish to become business owners, as franchising provides the benefit of an established and successful brand. The International Franchise Professionals Group (IFPG) connects franchise consultants and vendors with aspiring business owners, helping to guide them through the process of identifying and investing in franchise businesses. For those looking toward the franchise industry for a new opportunity following corporate layoffs, here are some frequently asked questions about opening the best franchises for corporate layoffs.
What Are Popular Franchise Opportunities for Corporate Layoffs?
Popular opportunities for those facing corporate layoffs include service-oriented franchises such as cleaning, pet care, home services, and automotive repair. These kinds of franchises often require little capital upfront and are not capital-intensive to operate. Additionally, service-oriented businesses often require no inventory and have low overhead costs. Additionally, some food franchises, such as ice cream parlors and quick-service restaurants, have become popular for those leaving the corporate world, as they require minimal depreciation of assets and can be operated with a smaller staff.
What Are the Benefits of Franchising?
Franchising is an attractive option for corporate layoffs because franchisors typically provide a business model complete with operational and marketing support from day one. This means a franchisee does not need to worry about setting up the operational elements of a business from scratch, such as hiring and training staff, designing a logo, creating packaging, and so on. In addition, franchisors generally have proven marketing plans and data that can be used to drive awareness and customer loyalty. Finally, a franchise typically provides access to vendor relationships, national promotion opportunities, and a strong brand recognition.
What Regulations Should I Be Aware Of When Choosing a Franchise?
Before investing in a franchise, it’s important to be aware of the various regulations that apply to the franchise sector. All franchisors in the United States are required to disclose key information in a Franchise Disclosure Document, which must be provided to prospective franchisees at least 14 days prior to sale of a franchise. The document includes information about the business and its key players, plus details about the land, goods or services that are included in the purchase, as well as the fees that need to be paid. Additionally, franchisees should also be familiar with federal and state laws and regulations pertaining to franchising, as well as the franchise-specific laws that apply to that jurisdiction.
What is the Typical Investment Needed to Open a Franchise?
The typical investment for a franchise varies based on the size and promised return of the business. However, it is important to have realistic expectations of the financial returns that could be achieved. Many service-oriented franchises have lower initial investments than those involved in retail, but potential returns are also typically lower. Initial franchise fees vary by brand, but are generally around $25,000 and often include a base fee and additional fees for training and/or advertisement expenses. It is also important to consider the ongoing (recurring) costs associated with franchising, such as royalties, training, and advertising, which are generally an expressed percentage of total revenue or gross profits.
How Can Working With an IFPG Franchise Broker Group Help?
The International Franchise Professionals Group (IFPG) helps potential franchisees identify the right franchise for their needs and goals. Our network of 1,300 franchisors, consultants, and vendor members provides guidance and support throughout the investing process. We offer personalized services to match potential franchisees with the right business opportunities, plus top-notch training and education to ensure our members are well-prepared to own and operate a successful franchise business.
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