Anyone who’s ever started an entrepreneurial endeavor can tell you there are a lot of misconceptions about owning a business. Buying a franchise is no different.
We’re about to debunk the top 5 myths about buying a franchise. Keep in mind, these are the myths about buying a franchise we encounter the most often, and we’re discussing them in no particular order.
1) Franchises are a "get-rich-quick" scheme. This is a common misconception, but just not true. The reality is that whether you’re talking about the franchisor who’s bringing the brand to potential business owners, or the franchisee who’s looking to become a business owner; building a successful franchise takes hard work, dedication, and a significant investment of time and resources. Franchises, like any business, require careful planning, execution, and incredible ongoing effort to thrive. While the systems and processes already in place with a franchise system make it quicker to launch, there’s no getting-rich-quick to it without putting in the time and effort.
2) Buying a franchise is like buying a job, and franchises require little to no prior experience. Buying a franchise is not buying a job. If anyone thinks they can own any business with no experience or learning curve, they need to think again. While some franchisors can train you if you have limited business experience, having relevant industry knowledge, management skills, and entrepreneurial acumen can significantly improve your chances of success as a franchisee. Successful franchisees often have a background that complements the franchise's offerings. As an example, if you want to buy a roofing franchise, you may not need to know how to install a roof – but you need to know how to sell, how to manage contractors, and how to market. Best advice here, what you don’t “know” you should be able to make up for with tenacity and grit, or a big pocketbook to hire the right people.
3) All franchises are the same. This is a novice viewpoint. Many people only think of the biggest brands when it comes to franchises – like McDonalds, 7-Eleven, or Subway. There are so many franchises out there. Many of which you’ve probably never heard of, and each of these franchise systems is unique. Each franchise offers its own set of advantages, challenges, and requirements. Franchises are not all created equal; and it's important to thoroughly research and evaluate any franchise opportunity to make sure it aligns with your goals, skills, and resources.
4) Franchisors provide all the support you need. While franchisors provide a range of support services, like training, marketing, and or operational guidance, franchisees are still responsible for the day-to-day management and SUCCESS of their business. Franchisees must be willing to put in the necessary effort and take an active role in their franchise's operations or face almost certain failure. The best franchisors, however, do help franchisees create a faster path to success than starting your own business from scratch may offer.
5) Franchises are less risky than starting a business from scratch. Absolutely not. While franchises may offer a more structured and proven business model, they still come with inherent risks. Starting any business is risky. However, the best franchisors have many things figured out for you, and a support network to help you succeed. Franchises do typically have a lower failure rate than start-ups. However, franchisees must carefully assess the financial requirements, market conditions, and competition in their local area to ensure the franchise is a viable investment.
It's imperative to approach franchise opportunities with a realistic understanding of the challenges and responsibilities involved. Comprehensive research, a great business plan, and a clear understanding of your own abilities, resources, and goals are essential to success.
Remember, if you’re considering buying a franchise, you don’t have to do it alone. Franchise Consultants are here to help you – and we provide that help for free!