How Do I Invest in a Franchise?

Franchising can be intimidating, especially if you’re new to the process. 

627,000 new businesses are formed each year, and for many of these new business owners, franchising is their path to success. 

But how do you know if franchising is right for you? And how do you go about starting a franchise business? It seems like a lot of hoops to jump through…

Fortunately, when you break it down, the process of opening up your own franchise business is really not that complicated. 

While it’s important to do thorough research and take any investment decisions seriously, there is a straightforward path you can follow to reach the finish line. 

What Is Franchise123?

Franchise123 was made to help people like you forge their path to success. 

Until now, the franchising process has been made overly complicated and expensive for young franchise brands trying to grow their businesses. 

Our primary goal is to match future franchisees with the brand that makes the most sense for their lifestyles, interests, goals, and abilities. We believe that investing in the right franchise is the number one factor in determining your success as a business owner.

Using our franchisee dashboard tools and comparison features, you can be confident that you are making an informed decision and that you are teaming up with a franchisor that has your best interests in mind.

How to Buy a Franchise

We’ve broken down the franchise investment process into three easy stages:

1. Identify: Familiarize yourself with the franchising model and determine whether it is the right fit for you.
   
   

2. Research: Start comparing and narrowing down your franchise options based on the criteria that are most important to you.
   
   

3. Decide: Move forward with your top selection and enter into the franchise agreement stage. 

We’ll dive more into the three stages below.

Stage 1: Identify

Is franchising right for you?

Franchising can be a great business model for the right person. Investing in a franchise will help alleviate the growing pains and the trial-and-error that goes along with starting a small business. 

Franchisors offer a robust business model and support to franchise owners that independent owners don’t have access to. Franchise owners also have access to industry experts, special vendor relationships, tried-and-true processes, loyal customer bases, and more. 

Stage 2: Research

There are several factors to consider when choosing a franchise. 

First of all, the franchise industry is extremely diverse. No matter where your talents and passions lie, there is likely a franchise out there for you. 

While most people think of fast-food franchises, the truth is that any type of business can fit the franchise model.

You can explore the vast opportunities in franchising using our franchise directory, which allows you to explore franchises based on industry, initial investment, available territories, and more. 

When researching your options, you’ll want to consider whether a large, established franchise system or a newly emerging franchise opportunity is right for you. 

Both have their pros and cons. 

A newly formed franchise may have a lower entry cost and more flexibility with how the business is run, but you won’t have the same kind of brand recognition as one of the larger, more well-known brands.

You should also consider whether you want your franchising venture to be a full-time or part-time commitment. Many franchise opportunities can be pursued on evenings and weekends, or you can even hire a manager to run the day-to-day operations on your behalf.

Stage 3: Decide

Franchises can cost anywhere from thousands of dollars to millions of dollars.

The total initial investment for a franchise includes upfront franchise fees that are paid to the franchisor directly, as well as startup costs including real estate, construction, equipment and supplies, initial marketing, technology setup, and more. 

When you’re ready to purchase a franchise, you should thoroughly review the brand’s Franchise Disclosure Document and consult a franchise attorney. It’s important to know exactly what you will owe the franchisor and how that money will be used to help the brand as a whole.

Your Guide to Franchise Success

If you want a step-by-step process to follow along with as you identify, research, and decide on your franchise investment, we have created a guide for just this purpose!

Your Comprehensive Guide to Franchise Success, released in July 2021, is a fully interactive, thorough guide to going from an absolute beginner to an informed, confident franchise owner.

We’ll walk you through each of the three stages mentioned above in detail, with exercises for you to complete and interactive tools you can use to assess your specific situation. 

Use this guide to narrow down your franchise options, assess your qualifications, prepare for business ownership, and more.

You can purchase the paperback version or the Kindle ebook on Amazon. The ebook is even included for free with Kindle Unlimited!

Start Your Journey

Are you ready to find your franchise match?

Get started with your free account on Franchise123.com or download the Franchise123 app on the App Store or Google Play.

Once you’re there, be sure to take the three-minute questionnaire so we can learn more about you and what kinds of franchises may be the right fit for you.

Questions about Franchise123 or about franchising in general? Reach out to us! We are always happy to help future entrepreneurs achieve their goals.