If you’re thinking about starting a business, then choosing a franchise that’s right for you can be a massive step towards becoming financially stable and independent. More and more people are leaving the corporate world to pursue business ownership through franchising. However, there are many that do not consider this due to myths that they believe to be fact. Similarly, some who pursue franchising do so because they have a misconception about what it means to be a Franchisee.
Let’s look at a few of those myths.
Myth 1 : Franchise Royalties Make My Business Less Profitable
The Truth: Royalties are but a small price to pay for the ongoing support and systems provided by the Franchisor, which in turn dramatically increase your probability of success and enable you to realize significantly higher revenues than you would without those systems and support. In addition to this, you have resources to assist you during upset conditions. For example, look at some of the support provided to Franchisees during the Covid-19 pandemic, which in many cases helped Franchisees not only maintain their revenues but in fact increase their revenues. In contrast to this, many small businesses without that Franchisor support closed their doors. They simply never had the band width to pivot quickly and effectively.
Myth 2: You Must Have A Business Or Entrepreneurial Background To Be A Successful Franchise Owner
The Truth: You do not have to be a well-known front page entrepreneur or even have any business experience in order to own a franchise! Successful franchise owners come from all walks of life, including athletes, teachers, nurses, first responders, veterans, accountants and more. They have embraced the systems provided by the Franchisor and have thrived. Their common qualities include the ability to lead, to communicate well with others, make swift decisions when necessary, and follow the systems that are provided to set them up to succeed.
Myth 3: You Should Only Consider An Industry You Are Familiar With
The Truth: It may be easier to stick to what you know within your comfort zone, however, it is not a given that starting a franchise in an industry that provides a product or service you are familiar with or passionate about, will lead to success. For example, many people think “I love dogs, so I’m going to invest in a pet business”, or, “I have always been passionate about cooking, so I’m going to own a restaurant.” It’s more important to ask yourself what you really want to do every day, how much you want to make from a financial standpoint, and whether you have the skills and the will to take it on. Take the two examples just mentioned – in most cases someone else is handling the pets or is doing the cooking. You as the business owner are running and growing the business, leading, and managing a team, and so on.
To be successful you need first and foremost to be sure that you will enjoy executing your responsibilities as the owner of the business, that the operations suit your lifestyle and financial goals and of course that the franchise is affordable for you.
Myth 4 : The Franchisor Will Run The Business For Me
The Truth: This is simply not true! Unfortunately, I speak to people daily who have the misconception that they can make a minimal investment and put in little to no work as a franchisee, and the Franchisor will make them rich. This is not going to happen. The Franchisor / Franchisee relationship is truly symbiotic. If the Franchisor was going to do all the work, they would not award the business to a Franchisee. In the franchising industry we talk about franchises being awarded, not sold. They are awarded to Franchisees who are a good fit for the business, including having the will to grow their own business.
Myth 5 : Success Is Guaranteed
The Truth: Success depends on you, the Franchisee! The Franchisor gives you the tools, support and training you need to be successful. How you use it determines how successful you will be. Yes, there are other factors that determine success but all these being equal we see the biggest variable is the Franchisee. We have seen Franchisees in some of the best territories fail, while we have seen others who have opened in the smallest / riskiest territories outperform their peers. We have seen Franchisees who are failing, sell their business which thereafter becomes hugely successful and vice versa.
These are just 5 of the many misconceptions about becoming a Franchisee, that can lead to bad decisions. However, I’ve got your back! My role as a Franchise Consultant & Coach is NOT to sell you a franchise, but rather to:
- Help you identify if franchising is right for you or not.
- Educate you on: Franchising (including debunking myths for you), Franchises, the Franchise Discovery & Purchasing Process, and more.
- Identify and present affordable, good fit franchises that meet your lifestyle and financial goals.
- Support and coach you through the Discovery and Purchasing Process.
- Ensure you have access to the right resources e.g. funding partners and franchise attorneys.
I encourage you to schedule a free consultation with me if you are serious or even curious about getting into business for yourself, but NOT by yourself.
Click on the link below to set up a free consultation.