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FAQs (FAQ) on Popular Franchises: Invest Smarter

Investing in a franchise can be one of the most lucrative opportunities for someone looking to make a significant career change. But with such a wide variety of franchises to choose from, many aspiring franchisees might feel overwhelmed on which one may be the right fit for them. With this in mind, the International Franchise Professionals Group (IFPG), a membership-based franchise consulting network with more than 1,300 members helping aspiring business owners find the right franchise opportunity, has compiled a list of frequently asked questions (FAQs) about popular franchises to help make the decision-making process easier.

Our collective mission is to provide guidance, education, and resources to aspiring business owners on how best to identify and invest in franchise businesses. Consider these FAQs a launching point of information to help you find the answers to the questions that are most prevalent when it comes to making the investment in a franchise.

What Is Franchise Investing?

Franchise investing refers to the purchase of the rights and associated resources to produce or distribute a product or service belonging to a company. When you become a franchisee, you become a part of a larger network, and you will benefit from the pre-established brand recognition, customer relationships, and training opportunities set forth by the parent company or franchisor. Your ability to make a profit is then dependant on your ability to run the franchise in accordance with the franchisor’s guidelines.

What are the Prerequisites Before Buying a Franchise?

There are a few prerequisites to be aware of before actively investing in a franchise. First, franchisees are required to provide a detailed business plan and proof of being able to financially support a franchise operation. Franchisors will also typically vet prospective owners with reference and criminal background checks, requiring applicants to show that they have the necessary managerial, operational, and customer service skills for successful franchising.

To support the development and success of their franchise operations, franchisors will also train prospective franchisees in the areas of sales, marketing, and business operations. Furthermore, franchisors are also responsible for providing their franchisees with initial and ongoing support in the form of corporate training, access to proprietary software, securing retail locations, and developing research systems and tools that can best monitor their franchisees’ performance.

What Factors Should I Consider When Choosing a Franchise?

Choosing a franchise should require thorough research and dedication to finding the one that will be the right fit for you. Almost every franchise is unique in terms of the cost, investment requirements, training, control and assistance provided to franchisees. Here are some additional factors to consider when researching a potential franchise opportunity:

• Investment Requirements: Determine what the initial investment and on-going fees associated with the franchise.

• Financial Analysis: Investigate the franchise’s yearly financial information and profitability.

• Brand Reputation: Conduct research to assess how the franchise’s brand image resonates with its customers.

• Location: Consider the franchise’s geographic location, market size, and the demographic target of potential franchisees.

• Operational Support: Examine the systems and resources in place to support the network of franchisees with ongoing training, supplies, and other tools.

Which Franchises are Most Successful?

The American dream of becoming your own boss through franchising certainly can become a reality. It is important to research various franchise opportunities and their individual success rates.

According to Franchise Business Review’s 2018 Franchisee Satisfaction report, the top-ranked franchises are handpicked based on satisfaction scores from franchisees in an independent franchise satisfaction survey. The top ten industries with the highest overall scores include:

• Sandwich Shops

• Property Restoration

• Tax Preparation

• Business Services

• Senior Care

• Personal Services

• Janitorial/Cleaning Services

• Children’s Franchises

• Pet Franchises

• Environmental Franchises

By considering the factors above — from investment requirements to brand reputation — you can effectively compare your options and determine which franchise has the best potential to bring you success and ultimately get you closer to reaching your career goals.

As a franchising network, the International Franchise Professionals Group (IFPG) offers various resources, programs, and services that can provide you with the support needed to purchase a franchise and guide you through the entire process of starting a business. We strive to ensure that each and every one of our members have the necessary knowledge and resources to make informed decisions and succeed in franchise investments.

Topics:

Franchise,

Franchising,

Investing

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