Multi-Unit Franchise Experts

Owning a Franchise for Families

Families with extra time on their hands are turning to franchising to make it a lucrative and rewarding venture. Investing in a franchise can be a daunting prospect, especially given the range of questions you may have that seem tough to get satisfactory answers to. There’s no one-size-fits-all threshold to owning a franchise, and the following Frequently Asked Questions (FAQs) on owning a franchise for families provide guidance shall you be ambitious enough to take that step forward.

1. What is franchising?

Franchising is a business model in which the franchisor offers the franchisee the opportunity to open and operate a business under the franchisor’s pre-established brand name and with a similar business model. The franchisor provides the franchisee with the necessary resources, such as training and materials, for the successful and ethical operation of the business.

2. What are the benefits of franchising for families?

Families looking to invest in a franchise will benefit from the name recognition, market knowledge and high profitability typically associated with franchise businesses. The franchisor will provide comprehensive training and support so that the franchisee can focus their energies on marketing, sales and customer service. The franchisee can also benefit from the increased flexibility of owning and managing the business as they can devote more time to family life. Franchising is also an arrangement that can be passed down to the next generation as an alternative to the traditional business model.

3. What qualities should I look for when selecting a franchise?

The International Franchise Professionals Group (IFPG) recommends that aspiring franchisees consider the following when choosing a franchise business model:

• Established track record – You should ensure that the franchisor has a long and successful track record in the industry.

• Market niche – You should ensure that the franchise you are choosing has a unique and differentiated market position

• Management commitment – You should ensure that the franchisor has a committed management team with the vision and technical know-how to help ensure the success of the venture.

• Resource availability – You should ensure that the franchisor has the required resources such as training, material and support services to help the franchisee succeed.

• Development opportunities – You should ensure that the franchisor provides opportunities for the franchisee to develop their skills and progress in the business.

• Revenue potential – You should ensure that the franchise has potential for growth and increasing profits over time.

4. How can I evaluate the financial performance of a franchise?

Franchisors must provide potential franchisees with extensive data on franchise performance, including average sales, expenses and profits. This data can be used to assess the financial performance of a franchise. Additionally, potential franchisees should assess the performance of existing franchisees and visit various franchise sites to gain an understanding of the business and its operations. They should also consult with franchise industry experts, financial advisors and franchise consultants who can provide further guidance and help identify attractive franchise models.

5. What legal agreements do I require to own a franchise?

Franchise agreements typically vary from one franchisor to another and are tailored to the specific needs of the franchisor and the franchisee. Generally, the franchise agreement will cover the rights and responsibilities of the franchisor and the franchisee, the duration of the agreement, disclosure of confidential information, fees and royalties, training and marketing programs, and dispute resolution process. It is important to ensure that you fully understand the agreement and its implications before signing it.

6. What is the role of the International Franchise Professionals Group (IFPG)?

IFPG is a membership-based franchise consulting network with more than 1,300 franchisors, franchise consultants and vendor members. Our franchise broker group helps to guide aspiring business owners through the process of identifying and investing in franchise businesses. We offer innovative programs and training, raising the bar in franchising and setting us apart among the industry’s franchise broker firms.

To summarize

Franchising can be a great opportunity for families who want to invest their time in a profitable business venture. The IFPG is here to help guide aspiring franchisees every step of the way. However, it is important to ensure that the franchise of your choice is the right fit for both you and your family by thoroughly researching the industry, the specific franchise, its financial performance, legal agreements and other stakeholders.

Topics:

Franchising,

Family,

Franchise Agreement

Download your free copy!

Explore multi unit franchising opportunities and uncover the mysteries of franchising in this e-book.

And learn to evaluate franchise concepts like an insider.

Request a Franchise Evaluation