As a potential franchise owner, there is much to consider when choosing the best franchise for your lifestyle and goals. If your goal is to spend more time with family, one of your primary considerations must be the type of business and the time commitment. Many entrepreneurs struggle to meet the demands of a startup while still reserving time for family responsibilities and events. Franchises offer substantial growth potential with a lower investment of time and fewer initial risks. We’ve created this guide to frequently asked questions to help you narrow down the best franchise for optimizing your goals and your lifestyle.
What Is Franchising?
Franchising is an arrangement between a franchisor and a franchisee. In franchising the franchisor grants a franchisee the right to engage in a certain business under the franchisor’s name and trademark. This right may also adhere some other exclusive benefits like providing the franchisee with a package of products, services, and systems used to develop, run, and market the franchise. The franchisee pays a fee, typically a percentage of gross revenues, and agrees to abide by certain rules of operation established by the franchisor. Franchising is one of the most popular ways for entrepreneurs to own and develop businesses in established industries, such as retail, foodservice, and automotive, and can offer greater success than a standard startup.
What is the Difference Between a Franchise and a Business?
At first glance, a franchise and a business may seem similar. After all, both involve the same end goal of setting up a business and seeking profits. The primary difference between a franchise and a business is that a franchisee must follow the rules and protocols established by the franchisor. While the franchisor will provide training and support, the franchisee must follow the franchisor’s standards for operating the business. With a business, however, the owner can exercise a greater degree of control, but they are also more reliant on their own entrepreneurial skills.
Are Franchises a Low-Risk Investment?
Franchises tend to be lower risk investments compared to starting a business from the ground up. Franchisors are required to disclose important information to potential franchisees regarding their costs and expectations, so franchisees have a certain amount of assurance when embarking on this venture. Additionally, franchises come with a proven business concept and a framework of established products/services, marketing, and operational processes. And, depending on the industry, established networks of suppliers, customers, and strategic partnerships that can make the process much easier and reduce the risks associated with starting a business.
What Are Some Good Franchises to Own for People Who Want to Spend More Time With Family?
When researching franchises, it is important to remember that different businesses require different levels of commitment. That said, there are several franchises within the retail, foodservice, and automotive industries that allow for more flexible working hours and potential for rapid growth. Examples of these franchises include auto detailing services, food delivery, and coffee kiosks, all of which offer relatively low overhead costs and require minimal staff. Additionally, there are franchises such as tutoring centers and pet services that can be operated remotely and provide the opportunity for franchisees to still be with family or have more leisurely hours.
What Is the Initial Investment to Own a Franchise?
The cost to buy a franchise varies significantly depending on the franchise system and the industry. Generally speaking, the initial investment to own a franchise ranges anywhere from $10,000 to over $1 million. When researching franchises, it is important to consider all of the initial costs involved, as well as the related costs associated with launching a business, such as leasing an office space or equipment, insurance, advertising, and website costs.
What Are the Benefits of Owning a Franchise?
In addition to the potential for success and the lower risk associated with ownership, there are several other benefits of owning a franchise. For people who want to spend more time with family, franchises offer greater freedom and flexibility in terms of hours and location. Additionally, owning a franchise gives business owners the opportunity to be their own boss and direct their own future. Additionally, most franchisors provide their franchisees with ongoing guidance, support, and resources to help them run and grow their business.