Breaking away from corporate life and investing in a franchise business can be an exciting endeavor. Franchises offer an opportunity for business ownership in almost any industry, allowing you to pursue your passion and tap into a network of resources and support from the franchisor. Investing in a business can also bring fulfillment outside of your career and bring you closer to financial independence.
Whether you’re looking for success in running a business, transforming your career, or seeking a lifestyle upgrade, doing your due diligence is the key to creating the future you want. Here we provide answers to Frequently Asked Questions (FAQs) that prospective investors may have when considering the franchise industry.
What Does It Mean To Invest in a Franchise?
Investing in a franchise means you are joining a franchisor’s established business model and purchasing the right to use their brand name, system and resources. You will be provided with the operational and marketing strategy on how the business works.
Why Invest in a Franchise?
The primary advantage of a franchise business opportunity is that you get to start with a head start. The franchisor provides training on the business and will typically have an established customer base. Franchising can be risky, but it offers greater chances of success if done properly. Franchisors are also more likely to offer assistance in the early stages of the business.
How Do I Learn About Franchise Opportunities?
To find out more about franchise opportunities, you can contact a franchise broker or consult with an experienced franchise consultant. The International Franchise Professionals Group (IFPG) is a membership-based franchise consulting network with over 1,300 franchisors, franchise consultants and vendor members who can help you identify the best franchise for your needs.
What Factors Should I Consider When Choosing a Franchise?
The most important factor to consider is what type of business you would like to own. Consider if you would like to own a business that requires you to work in the store or one that requires you to manage the business from home.
Cost is also an important consideration. Consider what type of investment you can afford, and research the franchise system to decide if it’s right for you. You should also take into account your time commitment, necessary skills, and any regulations and policies that would apply to your particular franchise.
Where Can I Obtain Financing for My Franchise?
Franchise financing is typically obtained from banks or other financial institutions. You may also be able to use your personal funds, such as savings or investments, or you can seek assistance from a franchise broker or consultant. Many franchisors also offer financing and other assistance to new franchisees.
Do I Need Any Special Experience or Skills to Become a Franchisee?
No. Franchisees don’t need any special experience or skills to become a franchisee. However, you should have some basic business knowledge — such as understanding of finance, marketing and operations — and be comfortable managing people and motivating a team.
What Other Benefits Will I Receive As a Franchisee?
When you become a franchisee, you will gain access to the franchisor’s marketing and advertising programs, operational systems and strategies, pricing structure, and access to a network of resources and support. Many franchisors also provide guidance to franchisees on how to properly run their business.