I’d like to set the record straight because I truly believe that having your own business can change your life for the better—and franchising is a fantastic way to make that transition to entrepreneurship. With that in mind, here are a few of the most common franchising myths we need to lay to rest as you consider the exciting world of franchising.
Myth 1: All franchises are fast food or retail
When thinking about franchises, most people’s minds will immediately jump to fast-food restaurants (you know the ones) or retail stores, thinking those are the only options available to them. Fast food and retail used to dominate the franchise market, but now there are countless opportunities available across nearly every industry—well “beyond the burger”—such as auto shops, cleaning services, vending machines, healthcare, pet grooming, and even tutoring. If there is profit in the industry, there are opportunities for franchising.
Myth 2: You have to be a millionaire to own a franchise
All businesses have startup costs, which can make entrepreneurship feel prohibitive for those without a pile of cash, but franchising often has a much lower barrier to entry for a couple of key reasons.
Different franchising options have different working capital requirements—for instance, a service or home-based franchise often does not require a brick-and-mortar location, significantly reducing the required investment and opening up possibilities to those with smaller budgets.
On a deeper level, franchising gives you access to the franchisor’s corporate resources. These include proven processes and systems, and often even marketing resources, business coaches, on-staff consultants, and an entire network of other owners who run businesses like yours. These help you get up and running much faster and may also eliminate the costs of hiring expensive salaried employees for corporate tasks. The beauty of the franchise system is that you are in business for yourself but not by yourself!
Myth 3: You need industry-specific experience
If you are trying to build a business from the ground up, having experience in the field is often critical so you can effectively develop your product or business model. Building that sort of industry expertise can take years of school, training, or on-the-job experience—or you pay for it by hiring experts who can show you the ropes.
Franchising is powerful because it offers opportunities with a turn-key system proven to work time and again (if you follow the system). Instead of building everything yourself by relying on your own industry expertise, you can build your business with a corporate partner that has a proven track record, using their business plan, training, ongoing support, marketing materials, products, and more. It’s much lower risk, and there’s no industry experience required!
Myth 4: Only consider franchises that match your hobbies or passions
It might seem like a great idea to buy into a franchise that fits a passion or hobby you enjoy. However, liking the product, industry, or even the brand does not guarantee business success. A poor fit may even erode your enjoyment of the hobby and create resentment of the business.
Instead, choosing the franchise to invest in should include intense self-reflection. Ask yourself what you really want to do every day, how much you want (or need) the business to provide financially, and whether you have the right skills to make it happen. The goal should be to find the right franchise so you can build a successful business that provides you the time and money to enjoy your passions outside of work.
Myth 5: Franchising is a hands-off investment
Though many franchising misconceptions make people hesitant to dive in, this pervasive myth sometimes causes people to rush in too quickly. This is the idea that franchise ownership is a profit machine that requires minimal effort. The truth is that a franchise only works if YOU do.
Before you invest in a franchise, it’s important to do some deep self-evaluation and do your homework. Be honest with yourself about whether or not you have the skills, time, and energy to put into a franchise business. Franchise ownership can be very profitable, but not without personal effort, so be sure you’re prepared to do the work before you get into it.
Truth: You can do it by yourself (but it’s a lot better with help)
After navigating all these myths and gaining a basic understanding of what it takes to be a franchise owner, you may feel ready to take on the challenge yourself. It’s tempting to think that the most cost-effective way to get into franchise ownership is to tackle the process of researching and matching to a franchise by yourself (another myth).
However, the truth is that working with a franchise advisor—whose services are typically free—will not only help you find the very best franchise option for your budget, but it will also help you avoid costly mistakes by giving you the added perspective of someone who’s done this more than once.
