Multi-Unit Franchise Experts

Two successful franchise owners completing their daily tasks at their coffee shop

FAQs to Investing in a Franchise

Recently retired from a successful career and looking to stay active and engaged in a business of their own, many aspiring business owners are jumping into the world of franchising. Franchising can be a great way to leverage an existing brand and infrastructure, while still serving as an independent business operator—which is exactly why the International Franchise Professionals Group, or IFPG, provides membership-based franchise consulting resources.

Our members work with aspiring business owners, from the initial process of identifying a franchise to making the actual investment. With our specialized training, guidance and ethical mission, we provide the insights and understanding needed for success with a new franchise.

To help people interested in taking the plunge and investing in a franchise, we’ve compiled this list of commonly asked questions and answers.

What Is a Franchise?

A franchise is a single business among many which are owned and operated independently, yet managed and shared within a larger system of franchised businesses. In other words, a business may become part of a larger company—like McDonald’s, for example—but each franchise will be its own separate business, legally speaking.

What Are the Benefits of Investing in a Franchise?

The biggest benefit to investing in a franchise is access to an existing structure and customer base already set up by the franchisor company. You’ll get the benefits of working with an established brand in a preferred location, among other advantages. Another major benefit is the support from the franchisor as you get your business off the ground.

What Kind of Investment Be Required?

The amount of investment needed to open a franchise depends on the franchise that you are looking at. A franchise fee, usually a one-time payment, is expected when signing the agreement and will be based on the size and type of franchise. Other expenses include rent, inventory, renovations, permits, construction, and more.

Does Training Come with Investing in a Franchise?

Yes! Normally franchisors provide extensive training in how to successfully operate the franchise. This includes the initial training program before the terms of the franchising agreement are signed, and then ongoing training or support services that the franchisor may provide to help ensure your business operates properly and legally.

What Factors Should You Consider When Choosing a Franchise?

When choosing a franchise to invest in, it is important to look at the overall market for the product/service the franchise is selling, the existing competition, the initial costs of the franchise and any potential difficulties that may arise. A strong partnership with the franchisor should also be considered, as it will enable you to receive the guidance and support you need, so it is essential to research the franchisor thoroughly.

Do Any Legal Issues Come Up With Franchising?

Yes, franchisors must abide by certain federal and state laws to legally operate in each jurisdiction. It is important to understand these laws before entering into a franchise agreement so that you are fully aware of your rights and responsibilities. A franchising lawyer should be consulted to help with any legal matters that may arise.



Franchise Investing,

Franchise Selection

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