The International Franchise Professionals Group (IFPG) is a membership-based organization composed of more than 1,300 franchisors, franchise consults, and vendor members. Together, our team assists those interested in franchise ownership by helping them identify and invest in franchise businesses. Franchise enterprises are an increasingly popular option for those looking to re-enter the workforce on their own terms, especially stay-at-home parents. If you’re one of these individuals, or considering becoming one, you may have many questions about the process of investing in a franchise. In this article, our franchise broker group will outline frequently asked questions about franchise direct for stay-at-home parents and provide answers to help you get started.
What type of business model is best suited to stay-at-home parents?
Whether you’re investing in a franchise as a full-time career or to supplement your current income, franchise systems provide numerous business models that offer favorable return-on-investment for stay-at-home parents. Franchise businesses that encourage a home-based work environment offer stay-at-home parents more inherent flexibility in hours and the ability to manage their own schedule while still generating profit. Franchises that fit this criteria include concepts such as home repair and renovation companies as well as those in industries such as retail and foodservice.
How do I select the right franchise?
Finding the right franchise for you can be a daunting task. Our team recommends you start off by researching the types of franchises available and assess which ones match your interests, level of experience and investment budget. Once you’ve identified the tier of franchises you’re interested in, it’s important to read through the FDD (Franchise Disclosure Document) of each option in order to evaluate the financial outlook for the business. Additionally, you should also ask franchisees of the system you’re considering for more information that may not be included in the FDD.
What should I look for when evaluating franchise investments?
It’s important to evaluate several factors when considering an investment in a franchise. The franchisor should have both an effective product and sound business model. Our team suggests evaluating the franchisor’s prior performance along with the initial cost of the franchise and estimated timeline for getting the business up and running. Additionally, thoroughly assessing the training and support provided by the franchisor is equally important, as this may help decide the degree of success of your franchise.
How much money should I expect to make through a franchise?
When investing in a franchise, expected income varies significantly due to a host of factors, including the industry the franchise is operating in, the amount of capital necessary to initiate an agreement with the franchisor, and the implicit value of the brand. Our team recommends you research the existing market and talk to current franchisees about their success before investing.
Are there any additional costs to owning a franchise?
Yes, in addition to the cost of the franchise system, many franchisors require payment for royalties, advertising funds, and supplies that are needed to properly run the business. Before making a decision, be aware of all fees that come with the franchise and ask the franchisor for clarification on any items for which you are uncertain.
Are there any special considerations for stay-at-home parents investing in a franchise?
Yes – depending upon the industry of the franchise, it may be beneficial to consult with tax experts and attorneys that are well-versed in the individual state’s laws in order to optimize the structure of your investment. Most franchisors offer support and resources for individuals looking to invest in their system, but it is important to be proactive in selecting the right franchise for you.
Franchising is a powerful avenue for aspiring entrepreneurs to take the reins of their financial future – particularly stay-at-home parents looking to enter the workforce on their own terms. Although the process of selecting and investing in a franchise can be daunting and overwhelming, a little legwork and research can go a long way. As the largest network of franchise professionals, our team at the International Franchise Professionals Group stands ready to provide guidance and assistance to everyone looking to move forward with their franchise business dreams.