With New Jersey’s strategic location between major metropolitan areas such as New York City and Philadelphia, plus the state’s proximity to the Atlantic Ocean, many investors and entrepreneurs are exploring the possibilities of opening a franchise business in the Garden State. For those considering purchasing a franchise in New Jersey, here’s a comprehensive exploration of different factors to consider before investing.
Franchises range from automotive repair to fitness and health care, so it’s important to do the necessary research and investigate the various opportunities. Here, we look at the best franchises for investors looking to spend more time with family. We also examine the processes of researching, investing in, and operating a franchise in New Jersey.
Types of Franchises
Franchises vary greatly in types and sizes, both in what they offer and the amount of investment required. Most states, including New Jersey, have disclosure laws that require prospective franchisees to receive comprehensive information about the franchisor, its operations, growth plans, and performance history before any papers are signed. Knowing the types of franchises available will make it easier to narrow down the search.
The most common types of franchises are: traditional business format franchises, franchise businesses with conversion opportunities, home-based, and emerging franchise systems.
Traditional Business-Format Franchises
The traditional business-format franchise is the most recognized type. With this model, a franchisee runs a business under the franchisor’s trade name and uses the franchisor’s operating methods. Examples include food chains like McDonald’s and Carl’s Jr. and convenience store chains like 7-Eleven.
Franchise Businesses with Conversion Opportunities
In this type of franchise, the franchisee purchases a business (therefore, the process of converting it into a franchise is more involved), either functioning or shut down. This type of franchise offers the flexibility to use a new name or the franchisor’s trademark.
One of the greatest advantages of a home-based franchise is that minimal real estate expenses are incurred. Examples of a home-based franchise include pet-sitting, senior errand services, lawn and garden care, and tutoring services.
Emerging Franchise Systems
An up-and-coming franchise system is one in which the franchisor is still in the early stages of development and expansion. This type of franchise offers potential franchisees a unique opportunity to join the system and watch it grow.
Keys Areas to Consider
Investing in a franchise requires research, due diligence, and commitment. Before investing in a franchise, consider these key areas:
Research the various types of franchise opportunities available. Investigate both well-established and up-and-coming franchises models to understand which one best fits the investor’s goals and expectations. Prospective franchisees should also assess the franchisor’s industry experience, continuous support, operating costs, and the business model.
Interested investors should calculate the amount of capital required for investing in a franchise, including franchisor fees (initial fee and royalty fees), capital to cover operational expenses and living costs, and working capital. Prospective franchisees should also consult with a financial advisor help them make an informed decision.
Before signing the franchise agreement, investigate the franchisor’s level of support, including the help that is available from the company’s executives, technical advisors, and marketing team. It is also important to explore the tools and resources available from the franchisor, such as websites, training materials, and marketing support. This will help the franchisee determine the franchisor’s level of commitment and the return on investment.
Best Franchising Opportunities for Investors Looking to Spend Time with their Family
For investors looking to purchase a franchise that will allow them to spend more time with their family, consider well-established home-based franchises.
Opportunities include educational franchises (tutoring, test prep, computer coding), professional service businesses (HR consulting, bookkeeping), and B2B franchise systems (cleaning, printing, waste management). Additionally, aspiring franchisees should look into the “non-traditional franchise systems” that focus on a specific niche, as they offer more flexibility for small business owners.
At IFPG, we are committed to guiding aspiring business owners through the process of investing in the right franchise. With our membership-based network of franchisors, franchise consultants, and vendors, IFPG is the preferred choice for entrepreneurs looking for quality advice and guidance. Our mission is based on integrity, ethics, and collaboration