Did you know there are 750,000 franchises in the US alone? This staggering figure shows there is plenty of demand amongst entrepreneurs looking to buy a franchise, and there are many options to choose from.
But, there are numerous common franchise myths that could stop you from buying into the franchise ownership model. This might lead to you passing on a fantastic opportunity that could transform your finances and lifestyle.
That’s why we’re going to debunk some of the misrepresentations that exist in the franchise market today.
Let’s dive in and learn more.
It is true that you generally need to make an upfront investment to buy a franchise. You’ll also usually need to pay ongoing monthly marketing charges and royalty fees based on your revenue.
While this can seem like a lot of money, it’s possible to find many fantastic franchises under 100k. Any marketing fees are also only expensive if the advertising strategies are not getting results.
If the campaigns bring in a large number of new customers, you’ll likely be delighted to pay your share of the marketing costs.
You don’t need to have experience in a particular sector to buy a franchise in that industry, and this is one of the biggest benefits of the franchising model. When you pay your fee, you are gaining access to tried and tested ways of working that have proven successful for the franchisor.
You can then use these same methods to increase your chances of success in your chosen industry. For example, you may be interested in cars and would like to work with vehicles every day if you could.
In this scenario, you can buy a car sales franchise and use the roadmap for success laid out by the franchisor. This method allows you to earn money in a sector that would otherwise be tricky to break into without prior experience.
There may not have been many different types of franchises in years gone by, but this isn’t the case anymore. You can find a franchise business in just about any industry, allowing you to find a business that matches your skills and interests.
You can even find online franchises that allow you to work from the comfort of your sofa if you prefer to sell over the internet. This is a great way to earn a living while working from anywhere in the world.
It may be easier to attract customers if you buy a franchise from an industry giant such as Mcdonald’s or Subway, but this can be a double-edged sword. If the company suffers a PR disaster, this could have a knock-on effect and lead to customers avoiding your store through no fault of your own.
Although it may initially be more difficult to bring in customers if you run a less well-known franchise, it’s possible to build up a steady customer base in your local area.
You may also find it is significantly cheaper to purchase a franchise from a company that has not yet gained worldwide fame.
Although you will receive help to get started and ongoing support, this doesn’t equal a guarantee of success. You’ll still need to put in the work to ensure your franchise delivers the required standards of work and outperforms the local competition.
But, you may still find it easier to gain success with a franchise than with a brand new business due to the extra help you will have from the franchisor.
Success is also measured differently by each individual. For example, the average wage for a full-time wage or salary worker was approximately $51,480 in 2021, and you may consider your franchise to be a success if you earn more than this in the coming year.
However, others may feel they need to become the number one performing franchise store in the network. Either way, it would be a mistake to consider success as a foregone conclusion after you purchase your franchise.
Some people may think business ownership as a franchisee doesn’t include the ability to make their own decisions. But, this is not the case. A franchisor will be busy and expect you to run your business by yourself as much as possible.
Duties could include recruiting and managing staff or onboarding customers. You may also have to deal with complaints, buy new equipment, and do many more vital tasks. As a franchise owner, you’ll need to be ready to make fast decisions to ensure your business survives and thrives.
While you may need to make many decisions on your own as a small business owner, you’ll still have support. A franchisor can teach you smart management strategies to help you manage the business efficiently.
They will understand the importance of customer satisfaction and brand reputation for their company and won’t want you to make unnecessary mistakes.
Before signing a contract, it’s a good idea to ask about the level of support you can expect to receive over the coming months and years.
Franchise ownership could be your dream career move and provide you with a comfortable lifestyle. Although you need to work hard and make an upfront investment, you’ll have plenty of support from the franchisor. You’ll also have enough creative license to try out your own business growth ideas.
While there is no guarantee of success, investing in a franchise could be the business opportunity you’ve been looking for.
If you’ve enjoyed reading this post, be sure to check out more helpful articles in our Learn More category before you go.