Franchising is becoming increasingly popular in a wide range of industries. But with this growing popularity comes a number of misconceptions. Misconceptions that, if taken at face value, could lead to a potential franchisee missing out on their perfect opportunity.
Before you make up your mind about whether franchising is for you or not, allow us to debunk some common myths about franchising. They may just change your opinion about buying a business!
1. You Don’t Have Any Independence in a Franchise
This is one of the most popular myths in franchising because people believe that the franchisor makes all the decisions and you have to follow them. However, this couldn’t be further from the truth. While you do have to follow their basic system, you’re given full flexibility with your location, who you hire and fire, and how you promote your business in the local area.
2. I Can’t Have a Job and Be a Franchisee
While some franchise opportunities are ideal for those who want to be hands-on with their business, there are also plenty of concepts that allow you to manage in the background while continuing your day job.
3. I Can’t Afford to Buy a Franchise
There are plenty of affordable franchise businesses out there, starting at well under $100,000. And even though there are fees to be paid on a regular basis (often monthly) these are normally determined by your individual business. All the other expenses you encounter are what you can expect with a normal business – plus you’ll gain all the advantages of support and training from your franchisor.
4. I Can’t Be Creative in a Franchise Business
This is another unfounded statement. Even though you’ll have to follow certain protocol when it comes to pricing, marketing, uniforms, branding, and so on, you’ll have full creativity with how you further your business. Many franchisors are open to suggestions from franchisees – for example, did you know the Egg McMuffin was an idea created by a McDonald’s franchisee?
5. A Franchise is Just a Business in a Box
Granted, with a franchise you’re provided with the initial concept that’s already been proven to succeed but that doesn’t mean that it will. You’ll need to have entrepreneurial skills, be understanding of the industry you’re in, and be dedicated to marketing and excelling your business. You can’t just expect to buy a franchise and watch it grow overnight without doing anything.
6. It’s Impossible to Fail with a Franchise
Any business has the potential to fail and even though you have the franchise business model to follow, it’s up to you to implement it correctly and make sure it succeeds. What’s more, these models aren’t perfect – and identifying where you can make improvements will make sure the franchise grows stronger.
7. There Isn’t Another Business Like this Franchise in My Area, So It’s Bound to Succeed
To the novice businessperson, this sounds ideal. But to the more experienced, it may ring alarm bells. There may be a viable niche within your local area for your franchise but always question why someone hasn’t set up the same business before you. There could be a reason why they haven’t.
8. The Franchise Needs to Be Something I’m Passionate About
If you love giving something back to the community and the franchise offers this opportunity, that’s great. But if you love playing tennis and think a franchise business in this area’s a good idea – think again. When you’re trying to make money out of your “hobby,” you could soon come to hate it. Instead, find something you know will succeed that allows you to play more tennis in your spare time.
9. Buying a Fast-Growing Franchise is a Good Idea
You may be looking to see what franchises are going through a growth spurt, wanting to invest in one of these. But take some time to consider what it’s going to be like running one of these franchises and whether you’ll enjoy doing it. Sometimes, a franchise that’s going through a growth spurt may slow down rapidly, and by the time you’ve invested, it could be too late. Instead, focus on a franchise that meets your skills, your lifestyle requirements, and your budget.
10. It’ll Be Love at First Sight When I See the Perfect Franchise
Unfortunately, buying a business isn’t like falling in love. Investing in a franchise is a career choice, not an emotional one. You may be instantly drawn to a business idea but looking deeper at the details may indicate that it’s not right for you. Understanding the potential of a franchise and how it fits in with your personal goals takes time, it’s not something that can happen in the blink of an eye.
Still got some more questions about franchising? Head to our FAQ section where you’ll find answers to the most commonly asked questions.