Multi-Unit Franchise Experts

A newly-signed franchisee standing in her new bakery franchise

Investing in Franchise Businesses

As individuals approach retirement age, they often start to think about how they can continue to grow their wealth. A franchise business can be an attractive option, as it offers a proven business model and a certain degree of security. However, buying into the franchise world can be an intimidating experience. The International Franchise Professionals Group (IFPG) is here to help aspiring business owners make sense of the process and identify the best franchise for their needs. In this article, we’ll address some of the most frequently asked questions about investing in franchise businesses.

What is a Franchise Business?

A franchise business is essentially a copycat of an existing business. When you purchase a franchise business, you are essentially buying an existing model. You will receive assistance from the franchisor to help you get set up and ensure that you comply with all legal and regulatory requirements. A franchisor will also provide training and ongoing support, so that you can operate the business according to the franchisor’s standards.

How do I Choose the Right Franchise?

Choosing the right franchise is an important decision. It’s important to take the time to thoroughly research the franchise and its potential for success in your market. Gather as much information about the franchise as possible and ask lots of questions. Consider the franchisor’s reputation, how long they’ve been in business, the quality of the training and support services they offer, and the profitability of the franchise.

Can I Negotiate the Franchise Agreement?

The franchise agreement is a legally binding document, so it’s important to understand every clause and provision. The good news is that many franchisors are open to negotiation. Speak to the franchisor about any concerns you have and ask for suggestions on how to best manage the franchise. It’s also important to do your own due diligence and ensure that any changes to the agreement have been reviewed by a qualified attorney.

What Types of Financing are Available?

Franchise businesses are typically financed through bank or private loans. There are also grants and other sources of financing available, depending on the franchise and the market. Talk to the franchisor and/or a qualified financial advisor to help you understand the options and decide which one is best for your needs.

What is the Typical Investment?

The investment required to purchase a franchise can vary widely, from as low as a few thousand dollars to millions of dollars. It depends on the franchise, the market, and the specific agreement. Generally speaking, most franchises require an initial investment of around $150,000, which typically includes the franchise fees, the license fees, the royalties, and any other fees that may be required.

Where do I Find Franchise Opportunities?

The best way to find franchise opportunities is to do a keyword search on the Internet or use a franchise brokerage service. The IFPG can also help you find potential opportunities that may be ideal for your needs.





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