FREQUENTLY ASKED QUESTIONS
A FREE Consultation with IFG, is exactly that – FREE – it will never cost you anything. It adds great value to your search and will give you the information you need to control your future. We often hear the following questions about our Free Consultations:
Why Should I Own My Own Business?
Business ownership offers you the opportunity to take control of your career, finances, schedule and future. You will be your own boss, work hard for yourself, and potentially reap the rewards that business ownership can offer..
How to choose the right franchise or business?
Deciding which business is right for you is a HUGE decision. The right business should not only interest you, but the initial investment amount must fit into your budget and it should enable you to live the lifestyle you desire (do you want more free time, more money, control over your work environment? Do you prefer part time involvement so you can keep your current job? Do you want to be hands on and work hard now to reap the benefits later?). Additionally, any business you choose must meet a market demand in your community. If there is no market demand or the area is already saturated with similar businesses, your new business will not have a bright, long future ahead of it. The best advice is to do your research before signing a franchise agreement. Speak with current and past franchise owners and make sure there is in fact a demand for the business in the area you’d like to open the business.
Why not go directly to the franchise instead of going through a consultant/broker?
We use our industry experience to give you all the information you need while you are exploring the business. We know which franchises are the least risky, most reliable, and most profitable in the space. We also know which are available in your area. Most importantly, we can help you determine which franchises are the best fit for your role as the owner…something that is sometimes a challenge if you are only used to looking at a business from the customer’s point of view. The franchise’s job is to sell you a franchise – sometimes regardless of the brand’s fit for you. If you are outside this industry, this kind of knowledge could take several months to gather. Because our service is free, we 100% feel that we are here to potentially save you money and time and your sanity during an important decision about your future. There are SO many options, wouldn’t you want the guidance of experience, for such a critical decision?
What if I don’t have enough capital to buy a franchise or business?
Funding your purchase of a business is nearly always a major consideration for business owners. Too often, people simply don’t have enough capital to help them after they start the business. Again, we’re in your corner. We can help you understand the WORKING capital you’ll need, too. We help you eliminate surprises. It’s critical to discuss funding early so any problems or issues can be addressed before it’s too late.
One excellent resource for financing options is the franchisor. They have solved this problem in the past for themselves and for other owners. They will have a good idea of what works for their type of business and will likely have options that make the most sense.
What are the ongoing fees? How do the royalties and marketing fees work?
It’s important to take the time to understand your ongoing financial obligations to the franchisor including whether or not you are obligated to pay royalties or other ongoing fees such as for advertising. Understanding this is essential for managing the financial health of your business.
How will a broker find me the right opportunity? What’s the process?
It’s systematic and proven. We try to match you with options that meet your specific criteria. But we can’t do that unless we know what those criteria are. We learn these by asking you questions designed to help us narrow our search and provide you the best matches. Here are a few examples of what we might ask:
- Have you owned a business prior?
- What about business ownership attracted you?
- Do you like selling? Do you like managing people? Do you prefer to work alone?
- What kind of capital do you have available to start your business?
- When do you want to open your business?
- Are you interested in multiple locations?
Does the business have to be an industry that I am familiar with?
Absolutely not. In fact, many franchisors prefer that you have no experience in the industry prior to owning the franchise. And they prefer that because they want you to learn their systems and follow their way of doing things. Franchisors are looking for transferable skills. Some want people who can motivate employees, close sales, and all want to teach you to manage efficient operations. Most do not want their owners doing the labor, but running the business. Typically in this equation, the franchisee is the manager not the labor.
Can I Own More Than One Franchise?
Yes, but this can vary by franchise concept. Many franchisors will award area or master franchises within a certain specified territory. These larger territories can be costly. If you own a single location and are successful, most franchisors will be pleased to award you another territory. If you own one concept and would like to purchase another franchise from a different, unrelated brand, this is usually possible unless you plan to buy a competing concept. Make sure to read the entire franchise agreement and also have an attorney who specializes in franchise law look over the agreement before you sign it. Let your attorney know that you plan to purchase another franchise concept in the future, so he can ensure you won’t have problems.
How Much Does A Franchise Cost?
The cost for a franchise varies greatly depending on what industry you choose to start the business in, whether the concept requires a storefront, office, home office, or is mobile, what state you buy the business in, and how much overhead your business will require. There are concepts that cost under $10,000 to start and other franchise businesses that require the investor to have millions of dollars in available liquid capital. Additionally, many franchise concepts offer financing or can help you gain financing if you’re interested.
How much money can I make?
Though a franchisor can’t predict your individual success, they should have a good idea about what a typical owner earns and your income potential. Be aware that the franchisor may offer information regarding gross sales which doesn’t include expenses for rent and other operating costs. This is why you work with a consultant. We’ll help you get to the answers you need, so your decision is educated.