Multi-Unit Franchise Experts

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Franchising for Career Changers

Making the transition from a corporate career to business ownership can be a daunting endeavor, especially when you are trying to start a business from scratch. Fortunately, franchising provides an attractive alternative path to successful entrepreneurship. As a membership-based franchise consulting network with more than 1,300 franchisees, consultants and vendors, the International Franchise Professionals Group (IFPG) leverages its collective experience, resources and expertise to help aspiring business owners via the franchise route. In this article, we break down the most common questions for those considering a switch to franchising.

What Is Franchising?

In the business world, franchising refers to a business model in which a franchisor licenses or leases goods or services to an independent “franchisee”. The franchisee pays the franchisor royalties for the use of its business model, trademarks, systems, and services. The franchisor is also tasked with providing the franchisee with ongoing training and support. Examples of franchised businesses include McDonald’s, 7-Eleven, Dunkin Donuts, Burger King and many more.

What Are the Benefits of Owning a Franchise?

There are myriad benefits to becoming a franchisee. Franchising provides an established and proven business model, increasing the probability of business success. Moreover, the franchisor typically provides substantial training and supports for the franchisee, which reduces the amount of energy needed to learn the business and increase the chances of success. In addition, franchisees typically enjoy help with marketing, obtaining business Licenses, and other start-up services. Most franchisees also benefit from the power of brand recognition, giving them an advantage over a business starting from scratch. Finally, many franchisors provide financing options to help the franchisee with the startup capital needed to open a business.

What Types of Franchises Are Available?

Franchises come in all shapes and sizes. There are franchises for virtually every industry imaginable, including restaurants, hotels, retail, health care, hospitality, automotive, and professional services.

Are Franchises Expensive?

The cost of buying into a franchise varies greatly, depending on the type of business, brand and location. According to Franchise Business Review, the median initial franchise investment lies between $50,000 and $150,000. However, depending on the franchise, certain costs can be significantly higher or lower.

What Else Should an Interested Franchisee Consider?

When considering a franchise, prospective buyers should carefully research the franchise system and the franchisee’s rights and responsibilities. It is also important to have a full understanding of the financial investment and the ongoing obligations of being a franchise owner. At IFPG, our membership-based franchise consulting network comes dedicated to guiding aspiring business owners through the process of identifying and investing in franchise businesses. We strive to provide support to this journey, with the goal of helping individuals in their transition to franchise ownership.

Topics:

Franchising,

Franchisee,

Investment

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