Franchises are a great way to start a business but some people turn away because they hear some of these franchise myths.
In this article, I’m going to debunk the 10 most common franchise myths and explain the truth behind each one.
1. Franchises Are Only for People With Large Budgets
While franchise investments may require more upfront costs than a traditional business, there are plenty of franchise opportunities available for entrepreneurs with smaller budgets. Many franchise owners have found success by starting small and gradually expanding as their income grows.
Speak with some of your local franchise owners and ask how they started out. I bet you’ll be surprised with their responses.
2. Franchises Are All the Same
This is one of the most common franchise myths. People often think the franchise business model is all the same regardless of the company you choose and that’s not the case.
There are plenty of different industries and types of franchises to choose from. A Waffle House franchise is a lot different than a travel agency franchise. And if you don’t like the traditional franchise business model, consider semi-absentee ownership.
3. Franchisees Have No Control Over Their Business
Franchisees do have some autonomy when it comes to their business. They are able to make decisions about marketing, staffing and other aspects of their franchise based on their individual situation.
Yes, franchisees do have to follow certain guidelines set by the brand but you still control the core culture of your franchise.
4. Franchises Don’t Offer Training or Support
Most franchises offer extensive training and support services to ensure franchisees get off on the right foot with their new business venture. Franchisor’s want their franchisee’s to succeed.
If franchise’s perform poorly across the country it’s going to negatively effect the entire brand. That’s why franchises offer training from franchisee orientation to ongoing operational support, franchisees can get the assistance they need to make their business successful.
5. Franchises Don’t Allow for Innovation
Many franchise systems actually encourage franchisees to be creative and come up with new ideas that are within the franchise framework. Franchisees have a lot of flexibility when it comes to tweaking their operations so that customers receive a unique experience at each franchise location.
It’s common for franchise owners to share tactics and strategies for success. Franchisor’s want you to be innovative. Think about it, the innovative owners are, the more profitable and efficient franchises will be.
6. Franchises Are Too Expensive
Franchise investments can be expensive but you are buying an established brand and proven business model. And you don’t need to have all of the cash on hand.
Most franchisees may qualify for loans or other financing options to reduce the initial cost of their investment.
Yes, franchises can cost hundreds of thousands of dollars but there are franchises you can start for less than $15,000.
7. Franchising Is Too Risky
Many franchise systems have strict requirements in place to protect franchisees from unexpected risk and help them succeed.
Additionally, franchises operate under laws that are designed to help protect franchisees from unnecessary legal liabilities so they can focus on running their businesses without worrying about potential risks.
If you’d like to know more about the potential risks of franchising, reach out to one of our franchise coaches.
8. Franchise Owners Don’t Make Much Money
In reality, many franchise owners make good money with successful franchises. With the right franchise model and location, franchise owners can generate significant revenue and enjoy the benefits of owning their own business.
It’s all about doing the research ahead of time. You need to find a strong brand and location that allows you to scale.
9. Franchises Don’t Allow For Creativity
Contrary to popular belief, most franchise systems actually encourage creativity among franchise owners to ensure they provide unique experiences that customers will remember and return for more business in the future.
Franchisee-owned businesses often have creative freedom within the framework of their franchisor’s guidelines so they can offer something special to customers that other franchises cannot match.
10. Franchises Require A Lot Of Work
Running a successful franchise requires hard work but it doesn’t need to be overwhelming or time consuming with the right support system in place. Most franchisors provide extensive training and support services so franchisees can quickly understand how to operate their businesses with minimal effort required on their part as they grow into experienced business owners over time.
By understanding the franchise myths and realities, franchisees can make more informed decisions when considering a franchise opportunity. With the right franchise system in place and access to the support services they need, franchise owners can enjoy the unique benefits of franchising and avoid potential pitfalls.
If you want help evaluating franchise concepts that best fit your skills and goals, request a free franchise evaluation by clicking the link below.