Starting a franchise business is an exciting opportunity for stay-at-home parents who want to re-enter the workforce on their terms. It’s the perfect way to jump back into your career and life with reduced financial risk, while still having the freedom and flexibility that comes with owning your own business.
The International Franchise Professionals Group (IFPG) is a membership-based franchise consulting network that provides access to more than 1,300 franchisors, franchise consultants, and vendor members who can help you get started. But before you invest, there are some important questions you should consider. Here are just a few of the most commonly asked questions regarding franchisees that the IFPG has collected.
Should I Own a Franchise?
The decision to invest in a franchise should be based on a careful analysis of your financial standing, goals, and lifestyle. Franchising offers entrepreneurs the chance to start a business without the burden of the immense risk that typically comes with going out on your own. It is important to remember, however, that franchising is still a business, and owners will need to put in the same hard work and dedication to be successful as they would if they were starting a business from scratch.
Before you invest, make sure to thoroughly research the franchise and franchise category in which you are interested. Speak with experienced franchisees, attend conferences, and talk with the franchisor to ensure that you have all the necessary information to make an informed decision.
How Much Does It Cost to Buy a Franchise?
The cost of a franchise varies greatly, depending on the market, category, and business model. Generally speaking, the total cost of the franchise will include the initial franchise fee, start-up expenses, ongoing fees, and ongoing costs of operating the business.
Initial franchise fees range from $5,000 to $50,000. Start-up expenses and ongoing costs depend on the business model, including personnel, technology, and marketing. For example, the costs for a B2B consulting franchise may run in the tens of thousands of dollars, while a restaurant franchise may require an initial investment of $500,000 or more. The IFPG can help you identify the estimated total cost for a specific franchise and discuss ways to offset that cost.
What Are the Benefits of Owning a Franchise?
The most significant benefit of owning a franchise is the business system, brand, and support that are already established. Franchisees can leverage these resources to reduce risk, minimize start-up costs, and quickly start generating income. Franchisees also benefit from the proven products, services, and methods developed by the franchisor and can focus on executing the system to maximize profits.
Finally, franchisees enjoy the freedom and flexibility that comes with owning their own business. They have the ability to shape their business and career on their own terms and make an impact in their community.
What Should I Look for When Selecting a Franchise?
When selecting a franchise, it is important to consider the type of product or services you are interested in, the market, the target customer, the financial model and the training and support offered by the franchisor. Investing in a franchise should be handled with the same approach as any other business investment, including looking at the long-term prospects for success.
The IFPG can provide experienced franchise professionals to guide you through this process, and help you assess the different aspects of the opportunity, and find a franchise that meets all of your requirements.