What Should I Consider Before Buying a Franchise?
Among the points IFA recommends for investigation are:
• The type of experience required in the franchised business.
• The hours and personal commitment necessary to run the business.
How Can I Tell If a Local Business Is a Franchise?
It’s difficult to tell just by visiting a local restaurant or business. However, if it is a franchise, there should be some signage in the restaurant which indicates that the restaurant is independently owned and operated. Many companies have franchisee-operated locations as well as corporate-operated units.
How Do I Investigate My Options?
Regardless of whether you choose to remain an independent business owner or become a franchisee, research is the single most important activity in making your decision. Without adequate information, you may end up making the most costly decision of your life.
How Do I Protect from Choosing the Wrong Franchise and Losing Money?
The potential to lose money is part of the risk of opening any business. Although most franchisees are satisfied and successful, some do suffer financial losses. That’s why you must be particularly wary of any company that “guarantees” profit or certain success.
How Do I Start Investigating Franchise Opportunities?
IFA has more than 1,400 franchisor members, representing over 100 unique business categories, listed on franchise.org. If you are considering whether to go into business for yourself, but not by yourself, we are confident that you will find numerous franchise systems that might be a good fit for you.
How Do You Investigate a Franchise?
Like starting any business, buying a franchise involves a risk. Studies show that successful franchisees:
How Much Money Do I Need to Buy a Franchise?
Investment requirements differ tremendously. It all depends on the industry and the type of business. Total start-up costs can range from $20,000 or less, to more than $1 million, depending on the franchise selected, and whether it is necessary to own or lease real estate to operate the business.
Is Franchising Right for You?
10 Key Questions to Ask....
What Are Common Franchise Terms?
• Business format franchise: This type of franchise includes not only a product, service and trademark, but also the complete method to conduct the business itself, such as the marketing plan and operations manuals.
What are the Advantages and Disadvantages of Owning a Franchise?
What Are the Criteria for Selecting a Franchise?
Before buying any business, you must carefully consider many factors that are critical to your success:
What Are the Key Subjects in the Franchise Agreement?
What Are the Legal Issues of Franchising?
A good relationship between the franchisor and franchisee is critical for the success of both parties. Since franchising establishes a business relationship for years, the foundation must be carefully built by having a clear understanding of the franchise program.
What Are the Major Industries in Franchising?
Virtually every sector you can imagine. Franchising covers the spectrum from almost A to Z.
What Do I Need to Know about Financial Statements?
Financial statements are the track record of the franchise. They are provided for you in the FDD and contain important information about the franchisor’s financial status and strength.
What is the FTC Franchise Rule?
It is a federal regulation which requires franchisors to prepare an extensive disclosure document and to give a copy to any prospective franchise purchaser before buying a franchise. The disclosure document typically used to comply with the Rule is called a Uniform Franchise Offering Circular, or UFOC.
What Questions Should I Ask Myself Before Buying a Franchise?
There are three main questions you should ask yourself:
What Should I Ask the Franchisees?
Questions about the franchisor:
What Should I Ask the Franchisor?
Questions to ask the franchisor:
When Should I Start Looking for Funding?
The sooner the better. It is usually a good idea to start figuring out how you will be funding your business venture as early in the process as you can. Some funding options take time and you don’t want to miss out on an opportunity. One of the most important aspects of opening a franchise is funding.
Why Should I Support IFA Member Companies?
Companies that belong to IFA must meet certain membership requirements. They must have a satisfactory financial condition and comply with all applicable franchise laws. In addition, all members must agree to abide by the IFA Code of Ethics.
What Are the Alternatives to Franchising?
In addition to franchising, there are two other popular methods by which businesses expand their market and distribution channels:
What Are the Key Items in the FDD?
Some of these costs are averages or estimates and may vary in your area. Talk to other franchisees who have been in the system for a year or more to see:
What Are the Keys to Franchise Success?
Making any business reach its full potential takes talent. If you've selected your franchise well, your franchisor will be able to help you avoid many of the mistakes new, independent start-up businesses make. Here are some keys for franchise success.
What Information Is Found in the FDD?
The purpose of the FDD is to provide prospective franchisees with information about the franchisor, the franchise system and the agreements they will need to sign so that they can make an informed decision.
What is a Franchise?
Franchising is a method of distributing products or services.
Where Can I Get Help?
• International Franchise Association (IFA), 202-628-8000, www.franchise.org
• American Bar Association's Forum on Franchising, www.abanet.org
What are your options when you begin your business?
Once you make the decision to start your own business, you need to decide whether you want to be an independent business owner or a franchisee.
STARTING A NEW BUSINESS: