There are certain things you might have heard that are putting you off from buying a franchise. There may also be some exaggerated facts that try to seduce you into buying a franchise without thinking. Whatever you may have heard, we are going to dissect some really common ones and serve them up you with all the details exposed. It is necessary to know fact from fiction before you make important business decisions, especially the ones where your investment is at stakes. Here are some popular myths regarding franchises and we hope you give them a good read.
Success is in buying a popular brand.
Many people have their noses on the ground scouting for franchises that are seemingly very popular. It is better to buy a franchise that is the right fit for you rather than buying one which is too “hot” to handle. Buying a less popular brand that you can manage well within your resources is wiser than owning a franchise that is a burden to deal with.
It is impossible to fail in a franchise business.
The sooner you get this notion out of your head, the better. There are risks involved in every business and although the franchise model has a low probability of going sour, that does not make it fail-proof. Anyone can fail running any type of business. The chances of error are always there.
There is no degree of freedom in a franchise.
You might have had friends advising you on the dinner table how buying a franchise is not a good decision and that you will be dictated by the franchisor. In reality, there is lots of room for your individual touch. The franchisor only dictates the basic framework, which is good because it is a tried and successful formula you are getting on a platter. Other than that, you are in control. You hire and fire and make managerial decisions. It’s a win-win deal.
I will have to resign from my job to run a franchise.
If you do your research, a large number of franchise owners are passively running their franchises. The franchise model is designed for such people who are working on other jobs.
There are more chances of success if you do what you love.
Hold that thought. Though the idea sounds ideal and appealing, there is little reason to follow through with it. Stats will show you businesses that involve the owner’s background have a higher chance of failure. You will soon begin to hate what you love. If you love playing tennis, do not buy a tennis franchise. Instead, go for a franchise that will give you enough returns to play all the tennis in the world.
There are more misconceptions about the franchise business that you may be surrounded with. Carry out thorough research before buying a myth. There are qualified franchise consultants that can help you choose the right franchise for you and will guide you better regarding the ins and outs of the franchise business.
Reference: Article by Pieter Scholtz, Co-Master Franchisor in Southern Africa for ActionCOACH