Multi-Unit Franchise Experts

Learn more about owning a franchise and what it takes before you sign-off on a new business.

FAQs to Consider When Purchasing a Franchise near You

Are you and your partner looking for the ultimate time freedom and flexibility with your new business? Franchises are a great way to start your own business without having to necessarily create a business plan from the ground up. While researching franchises for sale near you, the International Franchise Professionals Group (IFPG) implores you to consider these frequently asked questions.

Researching and Prerequisites

Before investing in a franchise there are a few necessary steps that you should consider carefully.

What experience and qualifications do I need?

Different franchises require different experience and qualifications, though many will require you to have some level of business or financial experience. It is always a good idea to check with your chosen franchisor to make sure that you have the relevant qualifications. It may be necessary for you to obtain some additional qualifications depending on your franchise.

What is the size and scope of the business?

The size of the franchise will vary depending on the number of stores and the extent of the product range. It is essential to research the size of the business that you are investing in — as an inaugural franchisee, you will have greater responsibilities than you would as a sole proprietorship.

How quickly would the franchise grow?

It is difficult to predict the future growth of any business accurately. A successful franchisor will be able to give you some indication of the growth rate so that you can better understand what you are investing in.

What are the costs associated with the franchise?

It is important to research the costs associated with the franchise before investing. This includes a combination of franchise fees, licensing fees, royalties, and other associated expenses that you may not have expected. It is also important that you are aware of any additional fees that may apply if the business does not meet certain targets.

Regulatory Guidelines and Regulations

It is important to familiarize yourself with the guidelines and regulations for franchises. Different jurisdictions will have different rules when it comes to franchising and as such, you should do your due diligence to make sure you are operating within the law.

What are the legal requirements for the franchise?

The legal requirements for a franchise can vary depending on the jurisdiction. It is essential that you research the legal requirements of the franchise before investing. This may include registration with the government, obtaining a business license, and any other regulations that apply to franchising in your region.

What guidelines must I follow while operating the franchise?

Most franchisors will have a ‘franchisee manual’ that outlines all of the guidelines you must follow while operating a franchise. This will include guidelines on customer service, marketing, and operational practices. It is essential that you read and understand all of these guidelines to ensure that you are operating your business in a legal and ethical manner.

What are the restrictions on the franchise?

There may be certain restrictions on the franchise that you should be aware of. These could include geographical limitations, limitations on the products or services that can be sold, and any other restrictions that are imposed by the franchisor or the governing body. It is important to research these restrictions to make sure that you do not find yourself in contravention of any laws.

Other Considerations

As with any investment, there are some other considerations that you should weigh before investing in a franchise.

What additional services are provided by the franchisor?

The franchisee may provide additional services that you may not have expected, including marketing support, social media management, business advice, and even legal advice. It is beneficial to research these services to understand what level of support you will receive from the franchisor.

What is the track record of the franchise?

It is always beneficial to research the track record of the franchise before investing. This can include customer service, financial performance, number of stores, and any other metrics that you may find relevant.

What is the exit strategy?

It is important to consider your exit strategy from the outset. This may involve selling the franchise, transferring it to a family member or partner, or even simply closing the business. It is essential that you understand the ramifications of each option before proceeding.

Conclusion

Franchises are a viable alternative for aspiring entrepreneurs who want to start a business without having to build it from the ground up. While researching franchises for sale near you, it is important to understand the answers to the frequently asked questions we have outlined in this article. Doing so will enable you to make a well-informed decision when investing in a franchise.

Topics:

Franchises for Sale Near Me,

Investment,

Franchising

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