The Complete Guide to Buying a Franchise in 2023 – Everything You Need to Know

The business professionals are discussing with their team buying a Franchise in 2022

The thought of becoming a business owner can be both thrilling and daunting! Many people want to start their own business but are confused about how to get started. 

This article will help you understand what it means to own a franchise, decide if becoming a franchisee is a good fit for your objectives and personality, lead you through the entire process, and reveal the best franchises to buy in 2023.

What Is a Franchise?

A franchise is a business wherein the owner of a brand and business model grants you the rights to use these assets (together with all associated trademarks, goods, systems, and so on). 

The franchise owner is the franchisor, and you are the franchisee. Getting started with a franchise is a much easier task than starting something from scratch which is one of the biggest reasons many people opt for franchising over starting something of their own.

A Step-By-Step Process to Buy a Franchise

Understanding what’s involved with starting a franchise can alleviate a lot of the stress and help you discover the best franchises to buy in 2023.

Step 1: Know Your Why

Owning any business can be an emotionally, physically, and financially exhausting experience. Before investing in a franchise, be sure you understand why you want to own one. 

If you believe that operating a franchise is more accessible than owning any other form of business, bear in mind that all businesses have obstacles. But understanding your motives and what you hope to get out of the experience will help you make the right decision.

Step 2: Research & Decide

A franchise’s popularity does not always mean that it is the best option for you. Don’t skimp on your research. Expect to spend several weeks on this task, and keep in mind that the best franchises to buy in 2023 should meet the following conditions:

  • A Proven Track Record: It’s best to go with a franchise that has a proven track record. This can give you confidence that you are investing your money in the right place. 
  • A Growing Market: The franchise you choose should be in a rising market. It may be tempting to go into an industry that is trendy at the moment, but researching the industry forecasts and future demand for your product is vital.
  • Social Responsibility: People like to do business with socially responsible companies. Learn about the social responsibility efforts of the franchises you’re considering.
  • Competition: Every business has competition. And a little competition might be beneficial, but too much competition can be detrimental to your organization.
  • Franchise Fees: Make sure that you clearly understand the revenue model and how the profit-sharing works in that franchise.
  • Working Environment: Ask the franchisor to connect you to a few existing franchisees. These contacts will provide better insight as to the franchisee/franchisor relationship as well as day to day operations and conditions.
Step 3: Start the Conversation

Once you’ve done your research and are ready to start conversations with a particular franchise, you should reach out via their website or connect with one of their franchise development representatives. They will likely walk you through some basic information about the company, obtain some information about you, and if warranted, will invite you to have more in depth conversations with the leadership of the company.

Step 4: Financing

A reputable franchisor will have a transparent, detailed finance meeting with you. In efforts to have a clear understanding of your financial capacity to start and sustain your business, they will likely supply a financial worksheet for you to fill out. This will also help you know the costs involved with starting your business. The franchisor should also be able to supply financing options should you require them.

Step 5: Finish All the Paperwork

It’s a good idea to review the franchise agreement documents closely as you will need to abide by any guidelines set forth by the franchisor for the duration of your contract. Ensure that you understand the fees and franchise operations before making this big commitment.

Step 6: Get Training and Support

Congratulations! You’re a business owner! Luckily, you have the advantage of working with a business that already has a brand, an audience, and tried-and-true methods for reaching them. The franchise likely has their own marketing team and support teams that will assist you with:

  • Branding
  • Product positioning
  • Marketing strategies
  • Marketing collateral

Best Franchises to Buy in 2023 in Your Budget

If you’re looking for the best franchises to buy in 2023 with an affordable cost to entry, iCode School is an excellent choice. iCode operates in the STEM education market, which is one of the fastest-growing sectors and is projected to grow for the foreseeable future.

They also have dedicated marketing and internal teams that will support you as you are starting and running your business.

Connect with an iCode representative to attend a discovery day call and learn more about how iCode works. Get in touch with iCode now!

Recommended Blogs

In a world where financial stability is becoming increasingly paramount, side hustles are no longer a novel concept but rather a strategic component of many individuals' income streams. But what makes a good side hustle and how does it fit into a broader financial plan? One interesting thought, have you ever considered owning a franchise as a viable side hustle? This prospect may seem daunting at first, but with the right franchise and the flexibility to be as involved as you want, it could potentially become a lucrative addition to your income. Let's take a look at the potential of franchise ownership as a side hustle, focusing on the thriving sector of STEM education franchises, and examine some key insights to help you make an informed decision. Understanding the Concept of a Side Hustle A side hustle is any type of employment undertaken in addition to one's full-time job. It's essentially an entrepreneurial venture that allows you to earn extra income while retaining the security of your primary job. Side hustles have been growing in popularity, particularly due to the changing dynamics of work brought about by digital technologies. In the gig economy, where project-based or temporary jobs are common,…
Franchise Buying 101 Want to start a business but not sure where to start? Have you considered buying franchise businesses, but you’re not exactly sure how it works? First things first: How do franchises work? A franchise is a proven business model where you leverage the power of an established system and brand to help you turn a profit without having to figure everything out on your own. In this article, we’ll take you through the process of buying a franchise company, explore the costs involved, and answer questions you might have before jumping in. When to Buy a Franchise Before you make a decision, it helps to consider when you should buy into a franchise opportunity. When is the best time for you? To make that decision, you’ll want to consider your circumstances, financial situation, and business goals. To start, ask yourself the following: Do I have enough money saved for startup costs and ongoing expenses? Do I have access to financing? Do the market conditions in my local area make sense for this right now? Is this business model feasible within my current lifestyle and goals? Will my past experiences support my success in this venture? Does the…
Most people have heard of franchises, the “business-in-a-box” model, yet it seems like the entire process remains shrouded in mystery. How do franchises work? What actually goes on under the hood? That’s what we’ll help you clarify in this article. How Does a Franchise Work? In a franchise, the franchisor (owner of the brand model) grants the prospective franchisee (you in this case) the right to use its trademark, products, services, and operating systems to sell products and services under the franchisor's brand name. Since the franchisor has already built a successful business, it can provide franchisees with a proven business model, operating systems, and other training and support to show franchise owners how to replicate that success. The prospective franchisee then invests in the right to operate under the brand name and leverages the power of the brand’s established systems to launch its own franchise location. The franchisee signs a franchise agreement - a contract that outlines the terms of the franchise relationship - which details any fees, royalties, territory restrictions, marketing requirements, and operating guidelines. Once a franchisee officially owns a franchise, the franchisor provides ongoing training and support to help the franchisee build a successful location as…

Request Franchise Information

Do You Meet the Following Financial Requirements?
$100K Minimum Cash Liquidity?
$500K Minimum Net Worth?