What if you avoided making a positive life-changing decision, all because you believed a lie?
There are countless entrepreneurs and would-be entrepreneurs out there who could thrive by running their own franchises. Unfortunately, there are many myths out there about franchise ownership that keep people from taking the plunge and finally escaping the rat race of working for someone else.
What are these myths? What are the truths behind them, and what can franchising do for you and your bottom line? Keep reading to find out!
1. Franchise Ownership: It’s Not Just for Fast Food
One of the most persistent myths that holds entrepreneurs back is the thought that franchising is limited to things like fast food restaurants or the occasional retail location. And it’s true that most towns are filled to the brim with restaurants like McDonald’s or Subway that are owned by franchisees.
However, there are franchises for plenty of other kinds of businesses as well, including insurance. This makes it easy for someone to leverage their knowledge of and passion for a particular industry into a very successful new career.
2. The Buck Doesn’t Necessarily Stop With Franchisees
The basic attraction of owning a franchise is the same as the basic attraction of opening your own business: the dream of being your own boss and calling all the shots. However, new franchisees quickly discover that the buck doesn’t exactly stop with them, especially because they have to follow certain regulations and mandates from their franchisor.
While that may sound limiting, it does come with a real silver lining: All of the franchise support you may need for every aspect of the business, including hiring, marketing, management, and so much more is provided. That support can make franchising the best of both worlds; you get to experience most of the benefits of having your own business and very few of the drawbacks.
3. Franchising Doesn’t Have To Be Super-Expensive
One of the other myths about franchising is that it’s super-expensive, and that myth usually goes hand-in-hand with the idea that franchising is limited to restaurants. For example, a person can’t open a McDonald’s franchise unless they have at least $500,000 in liquid assets, and this automatically rules out many people who might want to try their hand at running a store.
Fortunately, the vast majority of franchise costs are far lower, especially in industries such as insurance. Furthermore, most require far less liquid capital, and there are more ways to raise capital for business ventures than ever before. Ultimately, franchising remains very affordable, especially compared to the costs of opening your own business from scratch.
4. Location Is Important (But Not as Important as Everyone Says!)
Even those who have never had entrepreneurial ambitions have memorized the old wisdom that when it comes to having a successful business, nothing matters more than “location, location, location.” Because of this, some entrepreneurs hesitate to start franchising because they are worried that a business located anywhere other than the most populated area of a town will be a failure.
The truth is that all a good location does is improve the chances of someone walking through the door for the first time. You can improve your own chances of that through good marketing (something a supportive franchisor can help you with). And you can keep people coming back to your franchise through great service and reliable products, regardless of the physical location of your business.
5. Even Successful Franchises Won’t Make You Rich Overnight
Some entrepreneurs are wary of franchising because they worry it will be too expensive. Ironically, there are other entrepreneurs that rush into this new business enterprise because they think running a franchise with name-brand recognition will make them wealthy in a short amount of time.
Even the most ambitious franchisees who run some of the most successful franchises didn’t become rich overnight. It still takes plenty of persistence and hard work to achieve success, but most franchisees are happier building a successful business than working to simply make others wealthy at their old jobs.
6. Franchisee Success Is Never a Sure Thing
This next myth goes hand-in-hand with the last one. No matter the brand name of the franchise you decide to invest in, its success is never a “sure thing.” After all, just because someone is familiar with a business and its products doesn’t automatically make them loyal, lifelong customers.
It’s more accurate to imagine franchising as an opportunity that points you toward success. Between having reputable products to sell and extensive franchisor support, you will be in a good position to discover a path to standing out from the competition. It’s still up to you to walk that path, and make no mistake, each step involves plenty of hard work. Ultimately, though, it’s worth it once you reach your destination.
7. Franchising Is Far Less Corporate Than You Imagined
The final franchising myth is that becoming a franchisee is a bit like working for a corporation, especially because you must work within the guidelines of the franchisor. Considering that boredom with the corporate world is what causes many people to exit that world altogether, it’s understandable that some entrepreneurs would hesitate to become a franchisee.
Your life as a franchisee won’t be dominated by guys in suits speaking in nothing but business jargon. In fact, franchisors and franchisees alike are often just hard-working professionals who want to put in an honest day’s work and earn some money together. If you’d like to be part of that world, joining it is easier than you think!
Franchisee Success Is Never a Sure Thing
This next myth goes hand-in-hand with the last one. No matter the brand name of the franchise you decide to invest in, its success is never a “sure thing.” After all, just because someone is familiar with a business and its products doesn’t automatically make them loyal, lifelong customers.
It’s more accurate to imagine franchising as an opportunity that points you toward success. Between having reputable products to sell and extensive franchisor support, you will be in a good position to discover a path to standing out from the competition. It’s still up to you to walk that path, and make no mistake, each step involves plenty of hard work. Ultimately, though, it’s worth it once you reach your destination.
Franchising Is Far Less Corporate Than You Imagined
The final franchising myth is that becoming a franchisee is a bit like working for a corporation, especially because you must work within the guidelines of the franchisor. Considering that boredom with the corporate world is what causes many people to exit that world altogether, it’s understandable that some entrepreneurs would hesitate to become a franchisee.
Your life as a franchisee won’t be dominated by guys in suits speaking in nothing but business jargon. In fact, franchisors and franchisees alike are often just hard-working professionals who want to put in an honest day’s work and earn some money together. If you’d like to be part of that world, joining it is easier than you think!
Start Running Your Own Franchise Today
Now you know the truth about all those franchising myths. But do you know who can help you discover the joys of franchising for yourself?
Here at Confie, we are always looking for ambitious entrepreneurs who are ready to take their careers to the next level. To discover how we can help you go into business for yourself, feel free to reach out online or just give us a call at 714-252-2500!
