There is no doubt that franchising has become increasingly more well-known and popular over the last few years. However, despite its popularity, it’s not that well-understood by most people. The truth is, there are many franchises that exist in the world, but the experience of running one changes depending on what kind of franchise you choose.
If you’re considering changing careers and want to work for yourself as a franchise owner, it is useful to know exactly what’s in store for you. In this article, we will be debunking 5 of the most common myths about franchising.
1. You need experience as a business owner to run a franchise
The very framework of franchises relies on following proven systems and processes of running a business, and then being trained to implement them. So no, you do not need experience as a business owner in order to run a franchise. People from plenty of different backgrounds who want to further their skills and careers become franchise owners.
What franchise owners have in common, however, is the ability to communicate well with people, put in the hard work and have the drive and determination to see things through.
2. It costs too much
While it is true that some franchises can cost over $1M to get up and running, there are plenty of franchises out there that you can invest in for $100K or less. The cost of entry is dependent on a few factors, such as the industry, business model and the cost structure of the particular franchise.
The thing to remember is that you are not buying a franchise but making an investment. If you are really set on becoming a franchisee, there are many financing options available to you, including family member loans and small business loans.
3. You’re not really your own boss because the franchisor is in charge
Many people who want to become business owners don’t think about becoming a franchisee because they believe they won’t really be the boss as the franchisor is in charge. However, this couldn’t be further from the truth. Franchisors are merely there to provide a framework, but you are the one who is building and marketing the business.
You are the one who is investing in a brand, a marketing program and other systems that have been put into place to support you. While you will need to follow the systems designed to maintain service quality, you still have the freedom to make decisions as an independent operator of the business. You have the freedom to hire and fire whoever you would like, as well as implement ideas to improve the business.
4. You can watch the money pour in without putting in much effort
It’s a common myth that becoming a franchisee means the business will run itself and you don’t have to do much to reap the rewards. While this might be true in the long run where you may be able to sit back and allow the business to run itself. In the initial stages you need to put in the hard work.
While your level of involvement in the day-to-day running of the business will change depending on the franchise concept, the more involved you are in the beginning, the more success you’ll have in the long run. Like any business, you have to put in the time and effort to make it a success. Under no circumstances will it just happen on its own.
5. Franchisors will accept anyone
Some people hold the belief that franchisors will take anyone on board who is willing to pay. However, this is simply not true. Most franchisors are actually incredibly selective about who they let become a franchisee. There is usually an evaluation process put in to place so that both the franchisor and potential franchisee can get to know one another and see if they are a good match. Click here to find out more about ActionCOACH Franchise opportunity.
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