Some myths are harmless and even pleasant, such as those that involve the Tooth Fairy, the Easter Bunny, and let’s not forget Old Saint Nick and his intrepid crew of flying reindeer. However, there are other myths that are dangerous and costly — and unfortunately, myths involving owning a franchise are on this dubious list of falsehoods. That’s the bad news
The good news is that knowledge is power, and so debunking these myths doesn’t require years of research or analysis. It simply involves bringing the cold, hard facts to light. To that educational and potentially profitable end, here is the truth behind four enduring — but soon to be extinguished — franchise myths:
Myth 1: If you own a franchise, you won’t have any control in running your business.
Truth: This is patently untrue. Provided that you follow the basic framework established by the franchisor (which is the same as following established best practices in any business venture), you will have an abundance of opportunity to be creative and connect with your target customers. In fact, because of the substantial and ongoing support you receive, you will arguably have more flexibility through a franchise arrangement, than if you start your own small business and are forced for spend most (or maybe all) of your time putting out fires and struggling to make ends meet.
Myth 2: Investing in a franchise is much more expensive than launching a small business.
Truth: All of the marketing support, real estate, build out, supply chain assistance, negotiating power, and especially the established brand recognition that you get by investing in a franchise can be worth well over 6-figures, and sometimes over 7-figures. When you compare apples to apples, in the big picture investing in a franchise can be a bargain compared to launching a small business.
Myth 3: To make money as a franchise investor, you need to choose a large brand.
Fact: Thousands of franchise investors across the country are generating substantial ROI with lesser-known brands. To thrive, you don’t need to invest millions of dollars to operate a McDonald’s or Taco Bell. For a fraction of the cost you can invest in a locally or regionally-known home improvement operation or violin rental company, and build your customer base through excellent pricing and service.
Myth 4: You need to have an extensive business background to invest in a franchise.
Truth: Naturally, any business skills that you bring to the table will be an advantage. But you certainly don’t need to have an MBA in order to succeed in franchising. As long as you are a good fit with the opportunity and franchisor (and vice versa), you will get the ongoing support you need to optimize your chances of long-term success.
Bottom Line
Investing in a franchise isn’t a magic wand or silver bullet. Just as with any venture, there is risk involved. Doing your homework and consulting with a franchise lawyer are essential — as is steering clear of myths like those above that could derail your plans, and ultimately kill your dreams of becoming your own boss.
