If there's one thing about franchising that's true, it's that owning a franchise can give you fulfillment no other career can. We know that's a bold statement. But it's backed by hundreds of testimonies from experienced people in the industry. However, there are franchise myths floating around creating false expectations and fear about the industry. Let's go about Debunking Common Myths About Franchises.
We're here to debunk them, so you never have to wonder if franchising is too good to be true.
The Five Franchise Myths
1. Franchising is too expensive
Do you think it costs hundreds of thousands of dollars in liquid capital to own a franchise? Well, for some brands this is true. However, the majority of investment opportunities are completely affordable for people with prior business experience.
In fact, some franchise opportunities are cheaper than purchasing a new car! And definitely more affordable than housing if you're a homeowner.
So, how much does it cost exactly? Of course this depends on the individual brand. Some franchises in our inventory have investment costs as low as $40,000 and as high as $1,000,000.
Yes, this is a massive range - which is why it's important to have the the facts when it comes to specific brands and their overhead costs. It's not a one size fits all industry.
2. Owners are controlled entirely by corporate
The idea that creativity doesn't exist inside a corporate company is a cliche for a reason. However, when it comes to this industry this just happens to be a franchise myth. Many buyers acquire brands that come with its own methods and marketing, but in the end it's THEIR business in the community. And creativity is entirely possible.
After the business building is established, owners have the freedom to develop personal flare, their own promotions, events, and anything that adds to the health of the brand.
3. Big names are better for business
Franchising is familiar to most because of nationally loved brands that give the industry its reputation. This could also be why so many people assume franchising is expensive and lacks originality - because large mega corporations usually hold this standard.
However, small franchise brands are everywhere, too - you just don't recognize them as franchises.
These companies are great to invest in because you'll likely get 1:1 attention in the early stages of development and you can feel what it's like to join a family of entrepreneurs just like you.
4. You need experience in your franchise field
This franchise myth is understandable, yet completely false. You do NOT need experience in the industry you invest in. Though more experience is always welcome.
Franchisors are looking for qualities in their candidates, and not necessarily years in that specific industry. Usually, brands require potential candidates have business experience and ability to manage - industry training will come in the onboarding process.
5. Success is guaranteed
Nothing is guaranteed in life, and success is no different. Many people believe this myth because it's assumed that when you ride on the coattails of a big established brand, that success transfers.
Now there can be some truth to this myth, especially in the beginning of ones transition into franchising.
Franchisors do have an abundance of brand support and training for their franchisees. Franchisors have invested in developing solid business and operational processes, supply chains, advertising and lead generation methods, marketing, and more. But ultimately the only thing that will permit your success is the drive YOU have to make your investment work. Luckily, the majority of people we work with are driven by the need to make a difference, have more freedom, and leave a legacy - which aid in longterm success.
Leading You to GOOD Franchising
Our franchise brokers would love to get to know you and help answer any questions you may have regarding the industry. Bring any other myths you need clarity on, we're happy to help.
Learn More About Debunking Common Myths About Franchises
If you're ready to get informed about best practices and brands and getting past the common myths about franchises, complete our contact us form or schedule a call with our franchise expert, Jay Friedman.
Source: Franchise Brokers Association