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FAQs for Franchise Investment: What Corporate Layoffs Mean for You

Uncertain times and the risk of corporate layoffs have left countless people reevaluating their financial future. For many, this means exploring their entrepreneurial journey and considering investing in a franchise. But this is easier said than done and it’s natural to have a lot of questions.

The International Franchise Professionals Group (IFPG) is here to help. Our membership-based franchise consultation network includes more than 1,300 franchisors, franchise consultants and vendors. We join forces to guide aspiring business owners through the process of identifying and fostering franchise businesses with integrity, ethics and collaboration.

This article serves as a “Frequently Asked Questions” (FAQs) guide that seeks to answer the many questions an investor might face involving corporate layoffs and franchise investment.

FAQs on Franchise Investment and Corporate Layoffs

Q: How should I prepare financially for a franchise?

A: Preparation is essential for franchise investment and depends a lot on how much you can afford. Before you proceed, establish a realistic view of your financial capabilities and payment options. You will need to determine the amount of initial investment, future payments as well as corresponding cashflow projections. It may also be worth conducting due diligence such as researching the industry to evaluate actual earnings and potential risks.

Q: Is the franchise I’m interested in a good long term investment?

A: Assessing the long-term potential of any business requires deep research. Good franchises usually have considerable potential for long-term success, offering reliable returns and minimal risks. It’s important that you carefully examine the investing opportunity and asking franchisors about their performance history, estimated success rates and future outlook.

Q: How can I mitigate corporate layoffs and transition into franchise investment?

A: Corporate layoffs are a daunting reality, and franchising can provide some stability in uncertain times. It’s expected that you will have to undergo a learning curve and the process may take time. It’s also worth noting that transitioning to franchise investment is a complex process and it’s important to have an adequate understanding of the industry, especially for those transitioning from long-term corporate positions. Investing in a franchise entails different considerations and challenges than working for an existing business.

Q: What franchise will be right for me in the face of corporate layoffs?

A: The right franchise for you depends on your financial capabilities, your skills, experience and interests. Consider the industries that are expected to grow and which ones have a lower risk. Research your options and look for the right investment, such as a franchise that fits your desired return-on-investment. Additionally, don’t be afraid to reach out before making a decision. Our IFPG members are happy to offer advice and shape your understanding of franchising and the various opportunities that exist.

Q: What should I look out for when investing in a franchise?

A: Investing in a franchise is a big milestone and it’s fair to say that you want to get the most out of it. Research the franchisor’s policies and ask questions about royalty fees, restrictions on product and services, advertising fees and any other recurring fees. It’s critical to determine the startup and operational costs for the business so that you’re not met with any surprises once you become an official franchisee.

Q: What support and guidance is available to Franchise owners in the face of corporate layoffs?

A: At IFPG, we’ve got you covered! Our more than 1,300 membership-based members have unique insight into the entire franchising process and they can offer you any guidance you need in the face of corporate layoffs. Our supports are all-encompassing, ranging from suggesting the right franchise business for you to budgeting and even guiding you through selecting a location.

Q: What trends should I look out for in franchise investment?

A: The world of franchising is always changing, especially as the pandemic situation evolves. That’s why it’s important to stay informed about the trends within the industry. Keep an eye out for technology disruptions that might shape the franchises you’re interested in, pay attention to how franchisors are coping with the pandemic and trends in terms of the products they sold to pivot towards a more digital-driven operational model.

Q: What safety and health regulations should I consider when investing in a franchise?

A: As the pandemic still continues to have an impact on the world, health and safety regulations just been even more stringent. It’s important to be aware of the industry regulations and how you can meet them as a prospective franchisee. Make sure to research your local and/or state regulations and inquire with other franchisees to determine what health and safety standards need to be met.

Topics:

Corporate Layoffs,

Franchise Investment,

Franchising

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