20 Frequently Asked Questions about Franchising – Part I

Everyone is interested in franchising but there are common questions for which they are looking for answers before seriously looking to own one.

Here’s the first set of Frequently Asked Questions(FAQs) about franchising for you.

Question 1 : Why Should I start my own Franchise Business?

Owning a franchise business will let you take control of your career, time, schedule, and future. You can be your own boss, and reward yourself with hard work.

Question 2 : How to Choose the Right Franchise?

The choice of your franchise depends on your budget, interest, demand, location, and support.

Do your research on these factors before entering into negotiations with a franchisor.

Question 3 : How much should I expect to spend to own a franchise?

The franchise cost varies from a few thousands to millions of dollars depending on the industry, the retail territory, and consumer demand for the franchise business.

Question 4 : Will I be Successful if I buy a Franchise?

No. It is a known fact that franchising is a proven business system, but the success of your own outlet depends on the way you run the show.

Question 5 : How much Profit can I Make from Franchising?

The best way to arrive at a estimate is to talk to a couple of other franchises of the same brand.

Usually, your franchisor will give you a rough idea during the initial meeting.

Question 6 : What is a Franchise Fee & What Does it Cover?

The initial payment that you pay to the franchisor to buy the rights to run a franchise is the franchise fee.

It usually includes location selection, brand, initial assistance, training, and more, depending on the franchise.

Question 7 : Do I Have to Like the Franchise before Owning it?

There is no compulsion that you need to like the franchise you own. But, it doesn’t make any sense to buy the one you are not really interested in.

If you buy a franchise which you like, then you will put your heart and soul into it to make it a success. That can make all the difference.

Question 8 : Can I Buy More than one Franchise?

It depends on your franchisor. A multi-unit franchisee is one of the good options to expand your business.

Make sure that your first franchise is performing well before you make the leap.

Question 9 : Will the Franchisor Help in Franchise Operations?

Of course, the franchisor will help you in franchise operations.

Even if you are the sole franchise owner, you will still be receiving help and training from the franchisor, to develop a successful business.

Question 10 : Can the Franchisor Take Away my Franchise Business from me?

Yes. If the franchisor has proof that you have breached the franchise agreement, then your contract can be terminated. Your franchise agreement will have more details about this close. Do take a close look at it before signing up.

More FAQs on franchising are on the way. Questions? Click Here.