Knowledge in a franchise business is your nuts-and-bolts to manage the business in good order. So, you do your investigation process to gather more insights about franchising. Suddenly, you figured out that there are “hearsays” about this business industry. Busting any franchise myth is the best thing to do.
Myths in franchise businesses became facts. Without any sources of how these rumors have started, these fake news affect most potential franchisees to doubt franchising. Will you be one of them? Well, if you have a goal do not let any barrier stop you.
The point here is for you to sort out the facts from the lies. To do that, make some research and see to yourself how wonderful a franchise business really is. Opportunities are great and success is possible.
To help you find the truth behind these franchise myths, let me share with you most of them. But first, you have to understand what does franchise myth-busting means. Continue reading the details below.
What is Franchise Myth-Busting?
Myth-busting about franchise business is stories not based on reality. These are fictions that can cause confusion and doubt about the efficacy of franchising. Such beliefs have to be eliminated as they only destroy the reputation of the franchising industry in general view.
Franchise myths are like poison to dominate negativity in every potential franchisee’s mind. These lies became a threat and a challenge in franchise growth. Targets in such myth-busting include:
In this blog, you will understand the details of every franchise myth. Below is the list of common misconceptions about franchising. Scroll down to continue.
Top 13 Myths in Franchising
I did my best to talk to my clients and known owners of different franchise businesses. Through them, I gathered all the myths in the franchise world.
1. You will fail without experience in franchising
Experience is an advantage but that is not necessary for franchising. Whatever franchise business type you choose, you will learn how to manage the business. That is because every franchisor has prepared an intensive training program to develop the needed skills.
2. The most known company is the best one to franchise
One’s success in franchising is not based on how known the company they belong in. Even how well-known a company is, the future of your franchise business still depends on how well you manage it.
3. It is so expensive to buy a franchise than to own a business
This is a common thinking of the majority. There is a huge difference between buying a franchise and owning a business. If you prefer to own a business, you’ll start from scratch, do a lot of trial and error, create a business structure and marketing strategy, gain consumers’ trust, and many more. The thing is if your business plan isn’t effective, you have to start from the bottom again.
Whereas if you choose to buy a franchise, everything that you need is given by the franchisor. The product is proven and tested and is already known in the market. Less hassle, less stress, sure returns.
Bonus read: “How Lucrative Can Owning a Franchise Be?“
4. Company owners are just interested in money-making
Many think that franchisors don’t really care about their franchisees as long as they get additional investment from them to fund the company. This is not true. Franchisors follow standards in choosing a franchisee best fit in their business.
Besides, those royalty fees that franchisees are obliged to pay regularly are used to cover up expenses from the company which consists of marketing advertisements. These collected fees are used to pay advertising platforms.
5. “Being your own boss” is only applicable to franchisors
Some think that franchisors are the only ones in control of everything. This is somewhat true. Franchisees need to comply with the policies to maintain the quality of the brand product and keep the good reputation of the company. In terms of time, franchisees are still the ones in control of that.
6. Expertise in a certain business type is a key to success
Expertise is a plus but it is not enough to achieve success in franchising. Many franchisees out there who purchased a franchise business without any idea of the product or service they are going to provide. Their determination and a positive mindset are what brought them to keep the business running.
7. Franchisees who succeeded are in good locations
A perfect location has a great factor in your daily income. Please know that franchisors are assisting franchisees to find the best location where there is more of the target market. Most often, the best locations offer a much higher lease. This is why some franchisees tend to look for affordable ones.
Based on some franchisees, location is not really an advantage nor a disadvantage as long as they meet the expectations of every customer. As long as the service or the product is served as its best plus the employees are friendly and approachable, customers will remain loyal.
8. To be a top franchisee, you must be a degree holder
High educational attainment won’t make anyone a top franchisee. If you remember, every franchisee will undergo training before opening the business. In short, your achievements at school or even your profession may not apply to the franchise business you’re working on.
9. Franchising means the business can make good money by itself
In franchising, you cannot say the “I can sit back, relax, and enjoy” statement at all times. Holding your own time doesn’t mean everything in the business will work by itself and so let it be. After all, the only person who should give much care about the business is YOU.
Grow your business strong by being hands-on to it even showing up every day in a short time.
10. A franchisee has no freedom in franchising
Though franchisees are required to abide by the franchise agreement, it is not right to say that they no longer have freedom. Compare to the corporate jobs out there, franchise business is way far from providing financial and time freedom to franchisees.
Not to mention the unlimited PTOs they can enjoy. Such quality life is not offered to any office jobs.
11. Franchise businesses eat all your time and effort
Extra time and efforts are true during your start-up phase. The most crucial stage in the franchise business is its first 12 months.
It is reasonable to manage the business with a devotion to ensuring growth and keeping it away from sudden failure. This little sacrifice will result in lifetime comfort for you and your family.
12. Franchise opportunities are for gutless
This myth is quite offensive. For some, franchise businesses are for people who play safe with their investments. The truth is that those who risk their hard-earned investments in franchise opportunities are really fearless.
Switching careers from what you used to do takes a lot of adjustments. Your courage and interest in taking a franchise opportunity won’t be wasted.
13. Purchasing a franchise business is a sure success
There is a possible success in franchising but it’s not a guarantee. A franchisor will provide you with all that you need to succeed in the business. But to make it happen, you have to work on it and do your best to manage the business accordingly.
At the end of the day, you are still the game player, not the watcher.
Bonus Read: “First Steps Before You Search For A Franchise”
Benefits in Knowing the Truth About Franchise
Going through the bottom of franchise myths will strengthen your franchising knowledge. Knowing the truth will keep you away from frustrations. Also, your awareness will prepare you for the real world in the franchise industry.
Franchise opportunities are open for all interested. Make research and do the evaluation process. The facts in a franchise company are indicated in the Franchise Disclosure Document. Your relationship with a franchisor is bound to a franchise agreement.
Rather than entertaining the myths, focus your attention on the details specified on these legal documents. You can also talk to existing franchisees to know the real stories. Knowing the truth about franchise business is your one great advantage.
No one can please everyone and so in franchising. Even franchise industry offers great opportunities, others see it as unworthy of investment and trust. Those myths mentioned above ruined the real purpose of franchising – to provide real freedom and financial security.
As you find your perfect franchise business, do not let any hearsays influence your thinking to leave the corporate world and be your own boss. Reach out to a franchise consultant for assistance in case needed.