5 Franchise Myths – Busted!

franchise mythsBefore you enter into any business agreement, be it a franchise or your own small business, it’s crucial to walk in with your eyes wide open. Unfortunately, when it comes to franchise ownership, that goal gets complicated by all the misconceptions floating around.

Read on to discover some of the biggest franchise myths out there, so that when the day comes to sign the contract, you’ll be a well-informed franchise owner.

1 – I need to know all about XYZ before opening an XYZ franchise.

As a franchise owner, your job is to run and grow the business, whether it’s a restaurant, a home health care company, or a pest control franchise. Most franchisors will provide industry-specific training; you just need to bring the passion, drive, and business management skills. It can even work to your advantage to walk into unknown territory, since a background in the industry could cause you to deviate from the proven franchise system and increase the potential of franchise failure.

2 – I can’t afford it.

Buying a franchise is not cheap, but it’s still a relatively affordable investment. Some franchises can be started for as little as $12,000, and most can be established for well under $100K. Plus, many franchisors offer access to financing options to help you get on your feet, such as waiving the initial licensing fee and rolling it over into the franchise fee. Franchise fees are certainly a factor in the Can I Afford It? question, but there are plenty of low-cost franchises out there – you just have to know where to look.

3 – A big name is better.

It’s nice to own a business that has major brand recognition, but there are downsides to aligning with the franchise behemoths. These franchises often have higher fees, more stringent structures, and consumer expectations set in stone. A smaller, lesser known franchise might be easier to work with, and you can still reap the benefits of the support and expertise a franchise system has to offer.

4 – I won’t have any creative freedom.

Franchises may be known as a “business in a box,” but that doesn’t mean you’ll be put into a box when you own one. Franchisors provide the proven system and brand recognition (protocol, uniforms, signage, etc.), and you get to take it from there. You manage the business, you choose your employees, and you decide your marketing and promotional strategies. You can brainstorm new ideas for the company, which helps your business and the brand as a whole.

5 – Success is guaranteed.

Any company that “guarantees” your success is probably a fly-by-night operation. Because no matter how well-oiled the franchise machine, it will still require a significant investment of your time, energy, and financial resources to run smoothly. Franchisors provide training, support, and plenty of resources to help you achieve success, but it’s up to you to make the magic happen. Running a franchise is not easy, but the rewards can be great.

  • Brigitte Hazelhoff

    I am looking for nursing jobs