Multi-Unit Franchise Experts

Franchise Guide

Yet to Decide? Profitable Franchises

For recent retirees who have exited a successful career and are now trying to stay engaged and active in a business, franchising can be a great way to achieve such a goal. A franchise model has been long known for providing an aspiring entrepreneur with a roadmap for setting up a business and a proven system which they can emulate for their store. As such, choosing the most profitable franchise in 2023 can be a challenging endeavor. After all, your ultimate goal is to set up and grow a successful business, and you need to make sure that you’re making the right decision to achieve this.

The International Franchise Professionals Group (IFPG) is here to help. With more than 1,300 franchisors, franchise consultants and vendor members, entrepreneurs are sure to find the best possible guidance regarding any franchise venture they wish to invest in. The IFPG work on principles such as integrity, ethics and collaboration, and strive to help as many businesses thrive with their franchising model.

Top Questions to Ask When Analyzing Potential Franchises

When analyzing franchises to invest in, there are certain questions that you should be asking. Let’s review some of the most important ones.

What Is the Initial Investment?

Before you begin to take concrete steps in investing in a franchise, you should have a clear idea of what your initial investment in the business should look like. Franchisors have detailed breakouts of the different components that make up the initial investment, such as the initial franchise fee, training fees and nonrefundable deposits. Your financial commitment may also include real estate, inventory, equipment, insurance, working capital and any other costs associated with the franchise. It is best to be aware of what the minimum and maximum value of such an investment looks like and have a backup plan in case the investment doesn’t turn out to be as profitable.

What Are the Ongoing Fees?

When investing in a franchise project, you should also be aware of the ongoing fees you must consider. These fees can include monthly fees for point-of-sale systems, royalty fees and other technology fees. Royalty fees should cover services and technologies that will be provided by the franchisor and are generally assessed as a percentage of gross monthly income from the franchise. As such, the more successful the franchise is, the higher your royalty fees will be. Finally, you should check whether or not your franchise includes marketing fees, which are generally used for promotional activities and can be costly.

What Types of Support Are Included?

It’s not just the financials that you must pay attention to when choosing a franchise. You must pay close attention to the services that the franchisor supports. These services often include legal advice, accounting advice, advertising and marketing assistance, touchpoint management, brand protection, human resources, training and other similar services. In some cases, franchisors may even provide on-site support and help with setting up the store location. Make sure to check out what types of support are included in the franchise you’re interested in so that you can make sure that it’s the right fit for you and that you will have the right resources for setting up and growing your franchise.

What Are the Pros and Cons of Franchising?

Like any investment, there are both pros and cons to franchising that you should be aware of before you invest. On the plus side, franchising can be less risky than launching an independent business. It provides entrepreneurs with a roadmap and tested business model to follow, along with the security of a proven brand. Furthermore, the franchisor will generally provide support and resources to help the franchise succeed. Finally, in many cases, the franchisor will find and finance the location for you, making it easier to set up and launch the business.

On the downside, investing in a franchise means that you will lose much of the autonomy that comes with owning and running an independent business. You will also be subject to restrictions from the franchisor in terms of what you can and cannot do with your franchise. Additionally, the franchisor may have different financial goals that don’t necessarily align with those of the franchisee. Finally, there are generally big marketing and advertising fees associated with running a franchise.

What Are the Best Franchises of 2023?

It’s impossible to definitively answer this question without doing a full evaluation of each franchise opportunity. However, there are certain franchises that have proven to be consistent performers in the past. The top franchises in 2023 are likely to include fast food chains such as McDonald’s, Burger King and KFC; convenience stores such as 7-Eleven and Circle K; investing services such as Edward Jones, and automotive franchises such as Meineke Car Care Centers, Maaco and Midas.

Final notions

Investing in a franchise can be a great way to stay engaged and active in a business after retirement. There are plenty of compelling reasons to invest in a franchise, but it’s important to do your research and ask the right questions before you do so. The International Franchise Professionals Group (IFPG) is here to help guide aspiring entrepreneurs through the process of finding and investing in a business. With plenty of franchises available in 2023, it may be challenging to make sure that you’re making the most profitable decision. However, with the right research and guidance, anyone can make sure that their investment will be a successful one.

Topics:

Franchising,

Franchise Investing,

Functional Franchises

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