Are you looking to invest in a business and become part of a franchise network? It’s an exciting move, as it provides you with the opportunities and backing of an established brand and organization. However, it is often difficult to determine the best franchise option when you’re considering the many different options that are available. That’s why knowing the right questions to ask before selecting a franchise is a must.
The International Franchise Professionals Group (IFPG) provides a membership-based franchise consulting network with more than 1,300 franchisors, franchise consultants, and vendor members. Our mission is to guide aspiring business owners, who wish to spend more time with family, through the process of identifying and investing in franchise businesses with integrity, ethics, and collaboration.
The decision to invest in a franchise is an important one, so it is important that you ensure that your franchise selection meets the goals and expectations you have. To help, here are some of the most important questions to ask when considering a franchise:
What is the franchise’s track record?
It is essential to gain an understanding of a franchise’s track record. Doing so can give you an insight into its profitability, the success of current and former franchisees, and any legal issues that may have arisen. It’s also worth evaluating whether the franchise has expressed any desire to open new markets or expand in the near future.
What is the franchise fees and investment costs?
It is essential to obtain a clear understanding of the franchise’s fees and investment costs. Look into the initial cost of franchise, as well as the ongoing franchise fees and royalty payments. Make sure to also enquire about how those additional fees are spent as well as potential tax breaks or deductions you may be eligible for.
What marketing and support is provided by the franchisor?
Knowing the marketing and support you will receive from the franchisor is essential when considering a franchise. Questions to ask include how advertising is organised, who develops the customer service strategy, and what systems and technology are utilised. It is also important to find out if any franchise training or support is offered, and whether it’s provided centrally or locally.
What are the franchisee rights?
Knowing the franchise rights you can expect is essential. For example, some franchises might offer exclusive rights to operate within certain areas, while others may not. Knowing what your rights are can help you understand the competition you may be facing and the type of customer base you can expect.
What is the attraction to becoming a franchisee?
Your choice of franchise should be based on the benefits and attractions that come with becoming a franchisee. When deciding, think about what you want to achieve with the franchise, the opportunities that come with it, and the competitive edge that it might give you.
These important questions are a starting point for researching the right franchise for you and your family as you embark on your journey to business ownership. The IFPG membership-based franchise consulting network is here to provide guidance and assistance throughout the process, helping you make the best decision for your goals.
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