There are hundreds of franchises on the market, including dining options like fast-food restaurants, hair salons, daycare centers, spas, accounting, home improvement, and more.

Not necessarily! Some franchise owners choose to be owners and operators of a franchise, which helps save them costs on hiring additional employees and allows them to connect with their clientele. Others prefer to work part-time in their business in a “semi-absentee” model.

This allows owners to take advantage of more flexibility while maintaining a connection with the company’s daily operations. For owners seeking maximum flexibility, the “turn-key” model allows them to hire full-time managers to maintain the business while they supervise more from a distance and spend less time on site. There truly is a franchise model for every kind of owner.

While there are no guarantees that a franchise will turn a profit, franchises have a higher likelihood of profitability than individually owned and operated companies. Franchises are more likely to remain open, and most franchises report earning a profit each year.

As they begin work, franchise owners can draw on a tried model for success and benefit from access to experienced mentors. However, owning a franchise does require lots of work, and new franchise owners should plan on dedicating time and effort to ensuring the success of their franchise.

The opening costs of each franchise vary. Potential owners should consider initial costs and other costs for operation over time and what costs they are expected to cover. For instance, initial costs include the franchising fee (which allows each owner to use the franchise name and branding), equipment needs and location requirements.

Ongoing costs include the number of employees required, royalties to the franchise, and general costs of maintaining the location, licenses, inventory, and more, depending on the business.

Franchise owners need to do their research before investing in a franchise. This includes researching the industry of the franchise overall as well as the success of each franchise. Additionally, franchisers should consider the company’s culture and their own interest in the goods or services provided by the franchise. You can typically request information about a franchise from the company if you want to learn more about the business model, revenue, etc.

No, but it helps! After all, owning a franchise requires lots of work, especially in the first few years. Selecting a franchise with a model and product that resonates with you can make your job more fulfilling.

While the process can vary for each franchise, there are some general steps that potential franchise owners can expect after they’ve found a franchise they’d like to invest in. First, the franchise will interview potential owners to ensure the owner is a good fit for the company.

The franchise will also review the financial preparedness of the prospective owner before awarding a franchise. Once initial interviewing and checks have been conducted and the franchise is awarded, owners are given support from experts in the franchise.

These experts generally help owners select the location for the business, provide contractors that help outfit the new location, and conduct training for the owners themselves. Franchises typically provide additional support for owners as they host a Grand Opening and during the first weeks or months of operation. Most franchises provide ongoing support even after the franchise has been established within the community.

Experience within business ownership or management can certainly help franchise owners have a leg up as they start. But most franchises don’t require owners to have any previous experience in the industry to open a location. Regardless of past experience, the most successful owners tend to be those with entrepreneurial drive, creativity, and great people skills.