Multi-Unit Franchise Experts

Franchise Guide

Owning a Franchise – an Investors Guide

Being a franchisee is the dream of many people who feel unfulfilled in their corporate career. It’s an exciting journey to take control of your own business and have the freedom to make all your own decisions. However, it’s important to understand the risks, rewards and responsibilities associated with owning a franchise before taking the leap. This guide will answer the most common questions people have when considering whether or not to become a franchisee.

What Is A Franchise?

A franchise is a business model that allows you to acquire the rights to use a company’s tools, trademark, products and services in exchange for a fee. You receive the benefit of the existing infrastructure and support of the parent company. When creating a business from the ground up, you would need to invest a significant amount of time and money in setting up operations, buying equipment, and establishing a brand. A franchise simplifies this process by providing an existing business model and ongoing support.

What Are The Benefits Of Owning A Franchise?

There are numerous benefits to owning a franchise. The primary benefit is the ability to quickly start a business with an existing model and an established customer base. Depending on the franchise, you may also receive assistance with setup, training, marketing, and product sourcing. You will also benefit from economies of scale, as the parent company may be able to negotiate better supply prices. Finally, you can receive guidance from experienced franchisees who have gone down the same path before.

What Are The Risks Of Owning A Franchise?

Owning a franchise comes with the same risks associated with any other business. The initial investment may be high, and the revenue of the business may take time to grow. It’s important to understand the terms of the franchise agreement, especially if a vendor agreement is involved. It’s also important to conduct market research to make sure the target market is interested in the franchise’s products and services. Finally, there’s always the risk that the parent company will be unable to help you succeed.

How Do I Decide On A Franchise?

Deciding on the right franchise requires research, consideration, and patience. It’s important to find a franchise that matches your desired industry, is within your budget, and fits your personal goals. You should also consider factors like geographic and demographic trends, as well as the amount of support the parent company provides. At the International Franchise Professionals Group (IFPG), we recommend speaking with our experienced franchise brokers before deciding on which franchise to invest in.

What Is The Process For Obtaining A Franchise?

The steps to obtaining a franchise vary by company. Generally, you will have to complete an application, provide financial information, and meet any necessary qualifications. If your application is approved, you will sign a franchise agreement and begin the franchise setup process with the parent company.

What Are The Costs Of Owning A Franchise?

The costs of owning a franchise vary depending on the franchise and the size of the territory. Generally, the total costs can range between $30,000 and $500,000. This can include the franchise fee, startup costs, inventory, and operational costs.

What Financing Options Are Available?

Franchising is a great way to start a business without having to put up a large amount of money. Many franchisors offer financing options such as Small Business Administration (SBA) loans. You can also find other financing options such as personal loans, business credit cards, crowdfunding, and angel investors.

What Are The Laws & Regulations?

Federal and state laws regulate the sale and operation of franchises in the United States. Generally, statutes are aimed at protecting new franchisees and existing franchisees against unfair practices. Contact your state franchise office to find out about specific regulations in your region.


Owning a franchise can be an intimidating process, but with the right information and research it can be a rewarding experience. Being informed of the risks, rewards and responsibilities associated with franchising, as well as the support you can receive from the international franchise professionals group, is the key to a successful franchise venture.




International Franchise Professionals Group (IFPG)

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