Franchise Myths and Facts
When it comes to any business opportunity, you can never rely on any information that gets casually passed around. Most times the information you hear about a franchise is incorrect. However, there are many franchise myths and facts. There are few franchise myths about operating a franchise that can mislead you and cause damage to your business. This can often happen when one enters the franchise field with high expectations. Reality always comes around to crush those who have too high of an expectation. Be sure to look at all information about franchise myths and facts. You need to do research before believing any information you hear.
Myth: The most named and heavily seen chains are franchises.
Fact: Whilst many chains are indeed part of a franchise, a lot of big name brands are actually owned under one business model. This just means there are individual managers for each store the company owns.
Myth: There are no competitions from same brand franchises.
Fact: This depends on your contract. Sometimes you will get competition from a brand that is in the same franchise as you are. Be sure to read all the fine print before signing a franchise contract form.
Myth: Owning a franchise means your guaranteed for success.
Fact: Franchises are successful because of all the hard work they are. You have policies for everything. What the uniforms are, where you buy from, hours of operation and hiring policies. This combined with heavy investments and dedication is what creates success. It is not always an easy route.
Myth: You get to be your own boss.
Fact: This is untrue. You are roughly half the boss. The other half is the head company that issues all the policies and tells you what to do. If you want to do something with the franchise you have to get permission from the head company. If you fail to follow your contract because you think you are the boss, you might be facing severe legal problems.
Myth: It is less expensive to buy a franchise.
Fact: It costs about the same compared to starting your own business. This is because you are either building a new store from the franchise or purchasing it from another owner. This is the same thing you do with your own business. The only thing with franchises is that you pay a monthly royalty fee from a small percentage of your profits.
Myth: The more expensive a franchise the more you get from it.
Fact: It is not what you gain financially. If you are motivated only by money, then you are bound to go wrong. Instead focus on the skills you have and the skills you want to put into a business to succeed.
Myth: Going the franchise route is stress free.
Fact: Just like with opening any other business, there is a lot of stress involved. You have to hire employees on company policies and not your own, you have to buy products, organize and make yourself look good. Whatever happens with your own personal business is the same that would happen when it comes to a franchise.
Myth: A franchise means you do not have to deal with employees.
Fact: Every business needs to have a good boss to employee working relationship. If your store is working at its maximum you still have to jump in and assist if you want your customers to come back to your store in the future.
Myth: You will have more success with an established brand in my region.
Fact: You want to get a brand that people know any trust in the community. If you have an established brand that everyone loves and trusts, then you want to get a franchise that is similar and people will love all the same.
Be careful of all your business ventures. If it sounds too good to be true, then it very well might be. You can never know what unexpected things can occur when you go into the franchising world. If you need advice, never be afraid to ask for it because the only stupid question is the one you don’t ask. No one is going to laugh at you because you want your business to be successful.
About The Author
Alam Qureshi is a Certified Business Intermediary (CBI), Certified M&A Professional and Broker of Record at ProClient Brokers Inc., Brokerage. He helps business owners learn how to sell a business so they can get the maximum value for their company. call us 416 364 5550 or CONTACT US to get in touch.
Date modified: 10-20-2019