Multi-Unit Franchise Experts

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FAQs in Franchise Investment

Retirement can be a refreshing and exciting period of life. After years of hard work, you may finally have the freedom to explore your interests, spend time with family and indulge in leisure activities you had always wanted to enjoy. But, do you want to stay active and engaged in business? The International Franchise Professionals Group (IFPG) offers a great option in the form of franchise investment. Our franchise broker network will guide you through all stages of the investigation and investment process. Here are some commonly asked questions about franchise investment.

What are the Benefits of Investing in Franchise?

Investing in franchise offers several advantages compared to starting from scratch. The primary benefit is that you get the rights to use the brand name and benefit from the marketing campaigns that the franchisor carries out. Further advantages include:

• The use of established systems and products that are already popular with the customer

• Access to the resources, support, guidance and coaching of the franchisor

• The promotional support that comes with the franchise might include ready-made and well-designed stores, logos, websites, and other marketing materials

• Reduced risk as the franchisor has already refined and tested the business model and the same you get to benefit from

• Reduced cost of trial and error as most franchisors help out prospective franchisees in fine-tuning the existing business model.

What are the Fees Involved in Buying Franchises?

Most franchisors establish a fixed fee for their franchisees. This fee is typically called the “royalty fee” or “franchisee fee”. This fee usually covers items such as:

• The franchisee fee covers items like start up costs, royalties, advertising fees, renewal fees, and other fees.

• It is typically payable when the purchase of the franchise is finished and the franchise agreement signed.

• It also covers training costs, the franchisee’s share of the franchise’s marketing and promotional campaigns, and any other costs associated with the operation of the franchise.

Besides the costs listed here, franchisees may need to pay extra fees that vary from one franchisor to another. These could range from administrative costs such as a desk fee for the use of the franchisor’s office or fees for miscellaneous services like listings in the franchisor’s directory.

What Kind of Support can be Expected from Franchisor?

Franchisors typically provide a wide range of support services to their franchisees. Generally, they help franchisees in areas such as training, operations, recruiting, sales and marketing. These support services vary from one franchisor to another and might include providing you with initial training, manuals or marketing materials, assistance in setting up the store, and ongoing support, advice and problem-solving assistance. Support could also be available in the form of help with setting up a website, periodic webinars, and strategic planning.

What Should I Look for in a Franchisor?

Choosing the right franchisor is an important decision and should be taken only after assessing several factors. The list of criteria includes the franchisor’s track record, the structure of their business model, financial projections, the estimated initial investment and the franchisor’s long-term goals. Additionally, prospective franchisees should also take a close look at the franchisor’s methods for offering support throughout the entirety of the franchise relationship. The team at IFPG can assist in evaluating franchisors and selecting the right one to invest in.


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