Some Common Franchising Myths
by Compass Cleaning Solutions • January 08, 2016
Franchising is the best way to enter the business world. From top franchise business owners, you get the support to understand a business module and how to run it in a successful way. Even though the concept of franchising is popular, yet there are certain erroneous beliefs about this business concept which at times mislead investors and entrepreneurs for investing in any top franchise business. Here are certain myths related to franchise opportunities and the actual fact behind it.
Myth – Anyone can enjoy success in a franchise business
Actual fact – Investing in a franchise business is a good option to enjoy success in business. But, remember success is never guaranteed. For the success of any business there are many factors responsible for it like market saturation, training, support, location, the economy, and how hard you are working to make your business successful.
Myth – Franchising is best way to earn money
Actual fact – To make a franchise business profitable, both time and dedication is required. Thus, if you think that just investing money in a franchise business will make you richer, then you are having a wrong approach. You need to treat a franchise business as your own and put in hours of hard work in order to make it successful.
Myth – Investing in top franchise concept means success
Actual fact – Going for an established and easily recognizable top franchise options has got many benefits. But this never means that you will enjoy success. A lot depends on the kind of training and on-going support you will receive from the franchisor. Only when you will able to offer quality services to your customers, success will come in your way.
Myth – High cost franchise means higher return
Actual fact – Higher investment in franchise business does not guarantee higher returns. It has been found that high-cost franchise opportunities at time may get you less money as compared to a low cost franchise business.
Myth – Franchising business is less expensive
Actual fact – The startup costs for starting a franchise and starting your own business from scratch are often the same. Remember in a franchise business you need to invest money in an appropriate location plus you need to pay franchise fees and royalties to the franchisor for using their trademark and business model.
Myth – In franchising you will be your own boss
Actual fact – Certain amount of freedom and flexibility is there in a franchise business but remember you will always need to work within the company system and follow the pre-set standards for wages, suppliers, the price of the products, norms related to working hours and so on.
Myth – I don’t need any help from a lawyer to start a franchise business
Actual fact – For starting a franchise business, a legal contract is signed between the franchisor and a franchisee. To ensure you understand all legal and financial liabilities it is advisable to take help from a lawyer before you sign any papers. This will ensure smooth functioning of your franchise business.
Well, there are some more franchising myths, but never forget that the benefits of franchising are immense. These benefits cannot be ignored and if you really wish to get the best values of your money start looking for top franchise opportunities in the market.