Have you ever thought about franchising, but were reluctant because of some things you’ve heard? Let’s consider and debunk some of the most common myths about franchising:
1. Franchising is too expensive: For starters, owning a service- or a home-based franchise has low startup costs, making the barrier to entry easier. On a deeper level, using the franchisor’s systems gives you access to corporate resources such as digital marketing professionals, business coaches, and on-staff consulting professionals; thus eliminating the costs having to hire expensive salaried employees.
2. Corporate controls the business: The franchisor will provide you with certain guidelines and valuable advice to help you gain traction for the first 90 days after you launch. You are in complete control over the scale of your business and how big or small you want to make it. Together, you and the franchisor will develop a business plan that aligns both parties’ goals.
3. There is no creativity in owning a franchise: The franchisor will provide you with the framework and then you get to run the rest of the business however you wish. You can exercise your creativity with management, hiring, etc. If you prefer to be more creative, you can take on the role of marketing and come up with content or fun events to raise brand awareness. It also works the other way—if you prefer working with data you can take on an operations role. You utilize your creativity every day to promote your brand and develop the business.
4. You’re guaranteed to succeed: No one wants to hear this but when buying a franchise, or starting your own business, there is no guarantee of success. Roughly 20% of small businesses in the United States survive past their first year*. Owning a franchise has a higher success because you have that assistance, plus the brand can already have a solid reputation. Even though the franchisor will provide you with the necessary tools that have been successful, you still must work hard and utilize them. If you work hard and follow the guidelines from the franchisor, there is a higher rate of success, but it’s not a quick journey.
5. You must be an expert in that field: When franchisors are looking for the perfect franchisee they look for “soft skills,” including things like communication, leadership, work ethic, etc. No franchisor is looking for “hard skills,” nor is being a previous business owner a requirement. You will be provided with extensive support and will get the resources you need to succeed. Make sure you are passionate about the franchise business model itself; it’ll make the process a lot easier to learn. And it will give you more motivation to put your whole heart into the business.