The fact remains that franchisees – also being entrepreneurs – drive economic growth and create local job opportunities, while embodying the spirit of small business ownership through their hard work, innovation, and community involvement.
Franchising is about being in business for yourself, but not by yourself. However, several myths about franchising persist, discouraging potential business owners from exploring this path. The CFA shares insights to debunk these myths and highlight that franchisees are, in fact, small business owners too.
Here are five common franchising myths:
Myth 1: Franchisees don’t innovate like independent businesses
Fact: Franchisees often innovate at the local level, tailoring their products and services to meet community needs. While they operate within a proven system, they often have the flexibility to adapt to local market conditions.
Myth 2: You lose control as a franchisee
Fact: Franchisees are in control of day-to-day operations, from accounting to local marketing, staffing, and other administrative aspects of operating a business. While there are many important responsibilities that must be shouldered by the franchisee, an important benefit of investing in a franchise is the ability to rely on the support, guidance, and assistance of the franchisor.
Myth 3: Franchising is only for experienced business owners
Fact: Many franchisees come from diverse backgrounds with no prior business ownership experience. Franchisors provide comprehensive training and support, making franchising accessible to a wide range of aspiring entrepreneurs.
Myth 4: Franchising doesn’t foster entrepreneurial growth
Fact: Franchising often leads to entrepreneurial growth, with many franchisees expanding to multiple locations. Franchisees are empowered to grow their businesses and become multi-unit operators, contributing to local economies and job creation.
Myth 5: Franchising is only for those with huge capital
Fact: While certain franchise opportunities may require significant investment, there are many franchises with lower start-up costs that make business ownership more attainable.
For more information please visit https://cfa.ca/franchisecanada/discover/small-business-month/
