Prior to starting a franchise, you want to be sure you are making informed decisions. There is plenty of information regarding business franchising out there, but not all of it is accurate. You can learn valuable details about franchising from current franchisors, as well as franchisees. Franchising professionals will also be able to help you discern myth from fact. Here are just a few of the most common myths about franchising that you may come across as you research franchise business opportunities.
Myth #1: You Need Extensive Experience to Start a Franchise
Some people operate under the misconception that you need decades of previous business experience in order to successfully run a franchise. One of the primary benefits of beginning a franchise, as a franchisee, is that you are provided with the needed training materials and support.
That being said, there are certain franchise opportunities that call for a higher level of experience; however, this is uncommon and will be stated upfront. Additionally, skills that you may have gained in other industries can be transferrable to a new franchisee position, so don't be hesitant to try something new. For instance, you can take the information gained as an auto body shop owner and apply it to an auto insurance franchise.
Myth #2: The Franchisor Runs the Business for You
Though the franchisor owns the brand that a franchisee works under, they are not micromanaging every business decision. When business franchising, you call the majority of the shots and the success of the business you are running comes down to you. Franchisors have differing amounts of control over your operation, but they will not be in charge of daily decision-making.
Generally, franchisors are responsible for hosting your early training and providing support when required. You, as a franchisee taking advantage of all that business franchising has to offer, will be the one investing hours and energy into creating a thriving business.
Myth #3: Franchises Are Incredibly Expensive
The misunderstanding that all franchises cost an arm and a leg to be a part of stems from the idea that potential franchisees will always be investing in larger brands. According to Statista, in 2020, there were approximately 753,770 franchise establishments in the United States, indicating that your franchising options are essentially boundless. There is a notable difference in price points between smaller business franchising and larger business franchising. No matter how much money you are looking to put into your business, there will be a suitable franchise for you.
Be aware that business opportunities will usually cost you less than purchasing a franchise. Business opportunities typically consist of buying into the opportunity, learning how to run the business, and then running it as you wish. Franchises, on the other hand, may cost a bit more but the franchisor will provide more support as the business is being run. Don't forget to consider costs that may not be included in a quote from a franchisor such as additional training if needed.
If you are interested in business franchising, don't hesitate to reach out to the professionals at Franchise Recovery. We want to help you in any way that we can to make your franchising dreams become a reality.
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