Owning a franchise can be very rewarding. It also requires a significant financial investment and a substantial personal commitment of time and effort. While most people have some familiarity with franchising, at least as a customer of franchise businesses, there are a lot of misconceptions that can effect a prospective franchisee’s decision to pursue, or not pursue, their initial interest in an opportunity.
Misconceptions regarding franchise ownership
- One common misconception about franchising is that it is limited to fast-food restaurants.
- The truth is that franchising ideas exist in almost every area of the economy, allowing people with various interests and skills to purchase a franchise for which they are best suited, such as hair salons, car washes, fitness concepts, home improvement, and a variety of other options.
- Another misconception is that buying a franchise is an easy way to own a profitable business.
- Buying a franchise does not guaranty success. Some franchise concepts require significant day-to-day involvement by the franchisee. Owning any business, including a franchise business, requires significant effort.
- Frequently people have the misconception that franchisees do not really own their businesses.
- Franchisees are entrepreneurs who take risks and make investments in their businesses. Franchisors provide support and training, but franchisees run their own operations within guidelines set by franchisors. Franchisees hire and fire employees, make decisions about management, determine appropriate pricing, and make numerous other day-to-day business decisions.
Don’t let franchise misconceptions guide your decision about investigating franchise ownership.