Misconceptions 1- Franchises discourage creativity/freedom
While franchises create the basic framework for a business, that doesn’t mean they would micromanage all decisions that the franchisee makes. In fact, most of the day to day dealings are up to the franchise owner, including who they hire/fire, where they advertise, what events they host, or any other similar details. The guidelines put in place by the franchise aren’t there just to tell people what to do – they’re tried and proven methods for success. Many of the guidelines are put in place to maintain the franchise brand.
Misconceptions 2- Franchises are too expensive
While the startup costs for certain franchises can be expensive – even exorbitant – that doesn’t mean all of them are: the price is much less if you’re operating a home- or service-based franchise rather than opening a chain restaurant, for example. Besides, the most common occurrence in franchising is a one-time franchise fee which is used to set-up and train the new franchisee. An additional royalty paid to the franchisor is also required. Royalties support the cost of additional back office services provided for the franchisee.
Misconceptions 3- Franchises are not small businesses
Most people want to support small businesses over big ones, and that’s great! Support the local businesses run by people in the community. However, that often does include franchises- just because there’s a bigger corporation involved farther back in the start of the company, doesn’t mean the local chapter of it isn’t owned by a mom and pop couple who wanted some support starting out.
Misconceptions 4- Franchising only applies to fast food
This is patently untrue. While the most visible franchises out there are fast food restaurants like McDonalds and Dairy Queen, that doesn’t mean every franchise is built from milkshakes and French fries. There are pest control, house cleaning and even doggie day care franchises. If the business in question is a chain, then the chances are that it may also be a franchise.
Misconceptions 5- Having a franchise will instantly make you rich
In many ways, being a part of a franchise is a lot like taking a short cut in building your business. A lot of the trickier parts are already set up from you, and there is built in support and ways to make it work, but it doesn’t mean every franchise location is successful. It takes hard work and determination to make a business successful, even if you have a franchise backing you up. Are you ready to put in the work?