3 Common Myths Of Franchise Ownership
Mulling over a list of franchises for sale can leave you with many questions. Firstly, there's the need to establish what sector, location or niche you should enter. Then, there's all of the financial details to consider. Next, and perhaps most importantly, is the support network that can be provided by the prospective franchisor.
While many of the answers that can solve these issues are relatively self explanatory, there's a raft of information out there that can prove confusing in the hunt for a franchise. To that end, here are the three biggest myths about franchise ownership:
1. It's impossible for your business to fail
Many potential business owners assume that the franchise model is a win-win situation – they get to run their own business, and there's an instant path to profitability. While that's true to an extent, there's certainly no truth in the myth that franchise businesses essentially can't fail.
Just like any other business, diligence and hard work are needed if the endeavour is to be a success in both the short and long term.
2. There's no freedom or creativity
While the safety net of a franchisor can provide protection, many believe that it's impossible to have freedom within a franchise model.
However, Entrepreneur contributor Terry Powell explained that most franchisors essentially provide the basic system for the business, and padding it out in the hunt for increased profitability is something that's the responsibility of the franchise owner.
3. Franchise businesses are really low risk
As touched on, owning a franchise takes the same amount of savvy as any business. While there are perhaps less risks in the initial set up of the endeavour, keeping the franchise fruitful in the long term is down to its owner.
Forbes contributor Karsten Struass explained that some franchises can have failure rates around the 80-90 per cent mark – similar to any other small business in a number of industries. Avoiding becoming part of that statistic doesn't have to be laborious, and is a case of not resting on any laurels and using the overarching franchisor network wisely, rather than relying on it for all decisions.