Multi-Unit Franchise Experts

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Franchises for Stay-at-Home Parents

Starting a business can seem intimidating, particularly if you are a stay-at-home parent who has been out of the workforce for some time. One great way to become a business owner is by investing in a franchise. Franchising is a proven business model that provides entrepreneurs the opportunity to invest in an already existing business and brand.

The International Franchise Professionals Group (IFPG) is the premier franchise consulting network with more than 1,300 franchisors, franchise consultants and vendor members. Our mission is to enable individuals to take charge of their financial future and secure the financial well-being of their families while embracing the American Dream of business ownership.

This article will answer frequently asked questions about franchises, so that prospective entrepreneurs can make the right decisions that will lead to successful business ownership.

What is a Franchise?

A franchise is a licensed agreement between an individual or entity (known as a “franchisee”) and a larger parent company or organization (known as a “franchisor”). It allows the franchisee to use the parent company’s name, trademarks, products, services, and operational system. In exchange, the franchisee agrees to pay the parent company a one-time franchise fee and ongoing royalties.

In essence, a franchise allows individuals or companies to become their own boss and business owner by investing in an already existing business and brand, that is managed and supported by a larger parent company or organization.

Are There Different Types of Franchises?

Yes, there are different types of franchises. A few of the different types include single-unit franchises, multi-unit franchises, home-based franchises, and sub-franchises. Additionally, individual franchises may combine some or all of these types of franchises.

Single-unit franchises are single, stand-alone businesses such as restaurants, salons, etc., that require a larger, more substantial initial investment than a multiple-unit franchise.

Multi-unit franchises are a network of two or more branches of the same business owned by the same franchisee. The initial investment for a multi-unit franchise is typically about twice that of a single-unit franchise.

Home-based franchises are businesses that are operated out of the franchisee’s home and require less start-up capital than a single or multi-unit franchise.

Sub-franchises are those in which the parent company licenses their products and services to a third party, who in turn can become a franchisor and create their own sub-franchises.

What are the Pros and Cons of Investing in a Franchise?

There are both advantages and disadvantages to investing in a franchise. On the plus side, franchisees enjoy the benefit of an established brand and products or services as well as collective buying power that can lead to cost savings. Additionally, prospective entrepreneurs benefit from the parent company’s knowledge and experience as well as pre-existing customer base. Further, individuals who become franchisees may have greater access to financing than those who create a business from scratch.

On the downside, a franchise is not without risk. It requires substantial upfront capital for start-up, and ongoing fees for the usage of the parent company’s brand, trademarks, and other “perks”. Franchisees may also have to purchase supplies and materials from designated suppliers. Additionally, franchisees may lack autonomy in decision-making and may have to comply with certain rules and regulations of the parent company.

How to Find a Suitable Franchise?

The best way to find a suitable franchise is to start by researching your options. Ask yourself questions such as “What type of franchise do I want to invest in?”, “What are my goals?”, “What industry do I want to focus on?” and “What financial investment am I willing to make?”

Once you have done your own research, the IFPG can help you connect with a reputable franchise broker from our network who specializes in your area of interest. Our franchise brokers can guide you through the process of identifying and investing in franchise businesses, and ensure that you make the right decisions that will lead to successful business ownership.

Summary

Investing in a franchise is a great way for stay-at-home parents to become their own boss and business owner. When done correctly, franchises offer the opportunity to enjoy the benefits of an established brand and products or services, collective buying power and pre-existing customer base, and access to financing.

That being said, investing in a franchise is not without risk. Therefore, it’s important to research your options thoroughly and contact the IFPG for assistance in finding a suitable franchise.

Topics:

Franchises,

Stay-at-Home Parents,

Investment

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