5 Myths of Franchising PDF Print E-mail

1. You Have to Quit Your Job Buying a franchise doesn’t always mean that you have to quit your current job to begin pursuing your entrepreneurial dreams. Many franchises offer alternatives to becoming an owner operator. Franchisors recognize that not everyone can dedicate all of their time to the business, at least right away, so they came up with a plan to accommodate that. Franchise Solutions President Matt Alden said, “Owning and operating a franchise business is certainly a full-time job, however there are many franchises that allow you to keep your job while you ramp up your new business. Also, policies for absentee ownership - where you own the business but hire a manager to handle day-to-day operations - vary from one franchise to the next.” In fact, many franchises give you the option to hire someone to run your franchise. Americlean is one example, stating “absentee ownership viable – if an operating manager is appointed.”

2. You Have to be an Expert in That Field Not only do you not have to be an expert, but most franchises don’t require you to have any experience in the field. Most franchises are looking for business savvy people with the passion to own their own business and the drive to succeed. Most franchises have comprehensive training programs and offer continued support to keep you up to date and knowledgeable about the business. For example, Homewatch CareGivers offers the franchisee extensive training and unlimited support, and “The Homewatch CareGivers University provides over 2,700 hours of professionally developed online training to guarantee your caregivers are premier in the industry, by increasing skills and knowledge, improving capabilities and instilling confidence.”

3. You Have to Have a Ton of Money There are a lot of low-investment opportunities out there. The FranchiseSolutions.com Franchise Finder shows 22 with investments up to $10,000 and jumps to 60 in a search for up to $25,000. In addition, some organizations offer financing options and incentives to help get started, buy additional locations or to aid special groups, such as veterans. When you talk to franchise representatives, ask about these programs and offers. There are plenty of other franchisors that offer low down payments as well as payment plans to help you start a business.

4. It’s Easy Just because a franchise provides everything you need, doesn’t mean it’s easy to own or operate one. Success takes drive and determination so your success is up to you. It’s the old “you can lead a horse to water” adage. Alden points out that “Yes, a franchise business provides you the toolbox and road map to operate a successful business. Use the tools and follow the road map - and work as hard or harder than you ever have - and you'll likely succeed. Building a business isn't easy. Franchising gives you the structure within which to apply yourself versus going it on your own.” Although most franchises require no experience in the field, that means you have to train. They offer comprehensive training and support, so the franchisee must take advantage of that in order to prosper.

5. You Need Passion for the Product and a Popular Brand The most successful businesses are not necessarily the most glamorous. As Alden says, “Oftentimes the least glamorous businesses on the surface can be the most attractive under the surface. Take residential cleaning. Who wants to clean toilets? It's important to understand what drives a service business - marketing and sales to acquire and retain customers is your primary role in this type of business. Passion for your business should be as much about what your business can do for you as it is about what exactly your business does.” The cleaning industry is an example of non-glamorous businesses with high success rates. As stated on FranshiseSolutions.com, according to the Maid Brigade franchise disclosure document, “32% of our franchisees average more than $1.2 million annually.” Also, brand recognition does not mean instant success, and a younger company could offer a better opportunity. “By the time a franchise business is a household name it's likely that few prime locations or territories remain,” Alden said, “Also, many mature, branded franchise systems go in the direction of selling multi-store deals only and commanding higher initial and ongoing fees. A younger franchise that's out to become the next big brand in its space can provide an opportunity to compete against 'the big buy' in a prime territory with proven demand for the product/service.”