People are often surprised to find franchising is a diverse industry. There are a ton of options out there for aspiring franchisees. We encounter franchises all the time, but we often think of them as them roadside businesses sprinkled across the nation.
Because you may be familiar with the idea of franchising, you may also have many misconceptions. The HIRE YOURSELF team thinks it is crucial for any potential franchise candidate to know what is and is not true about franchising. In this article, we will approach nine different myths and explain why they are untrue.
nat and Pete discuss the franchising myths on this podcast episode.
Franchise Myth #1. Franchising = Fast Food.
Okay, this is the biggest one. Yes, McDonald's and Five Guys and KFC are all franchises, but fast food businesses make up just a fraction of the opportunities franchising business systems offer. Franchising is an increasingly prominent factor in countless industries, including business consulting, real estate, travel, elder care, staffing, security, sports, retail, fitness, relocation, automotive, accounting, advertising, and the list goes on and on.
Many potential franchisees get scared away when they start their research with fast food. The investment costs are high, but there are plenty of franchises out there with much lower investment requirements. Fast food is one segment of a larger pool of opportunities.
The point is, if you want to build your own business through franchising, there’s an option to suit your strengths, skills, and career objectives. It is beyond food!
Franchise Myth #2. Franchising = Hands-On Labor.
Another prominent myth about franchising is that if you choose this career route, you’ll forever be the person behind a counter or making service calls. You may think being a franchisee means being the direct labor and/or point of contact for your customer.
You think you will have to be the guy making subs behind the counter or shipping boxes. Becoming a franchisee then seems like a less exciting opportunity for someone who is in the corporate world. Why leave your $250,000 a year job to flip a burger? But that's not the way it has to work!
This is the myth that keeps many high-level executives on the fence, hesitant to give up the privileges that come with being atop the corporate ladder. The fact is, franchise opportunities come in all shapes and sizes. One of the most desirable routes that allow the franchisee to come in at the master level is owning multiple facilities, services, or an entire market.
Franchise Myth #3. Franchising Means Giving Up Job Security.
How secure is your job right now? You may think you are in a safe position, but the past couple of years have shown that no one in the corporate world is safe from cuts and downsizing. If you own your own business, you won't fire yourself.
When you work for someone else, you are renting your income. When you become a franchisee, you own it.
One of the best things about franchising is that in many cases, you can build up a franchised business without giving up your day job. Every day we work with successful candidates who are looking ahead and using franchising to bridge their way out of the corporate world or into profitable retirements. There are franchise opportunities available for every level of time commitment, from a few hours a week to 24/7.
Franchising is an excellent opportunity to increase your job and income security.
Watch Pete and Nat debunk the Job Security Myth
Franchise Myth #4. There’s No Room for Individuality in Franchising.
Whether you are creative, expressive, energetic, charismatic, or just your brand of capable, there is a franchise that will allow and encourage you to be yourself and bring your own unique special sauce to the operation.
While it doesn't make sense to go rogue and do whatever you want, you will be able to add your business acumen to build a successful franchise unit. As a franchisee, you are paying royalties for the franchisor to provide their system. Dropping their guidance will not help you. But you can express your individuality within the franchisor's systems and processes.
Franchising is all about successful, replicable systems. But within those systems, there’s plenty of room to make your own decisions and have your say.
If you know the name of a brand, you have probably already missed the opportunity. Popular and hot franchises are known because people have already invested. That doesn't mean there aren't fantastic opportunities out there.
There are strong arguments for choosing a franchise that’s already a brand name, but also for being an early adopter of an up-and-comer. How do you decide? Talk with a franchise consultant who can help you identify your strengths, explain local possibilities, and help you match the perfect franchise opportunity to your objectives.
Franchising Myth #6. Franchising is too expensive.
How much do you know about the cost of a franchise? You may think you need huge sums of money to invest, but the truth is that there are different investment levels. You can leverage your assets in numerous ways to invest in a franchise.
All franchisors will have requirements for liquid capital and net worth, and as long as you meet those you can consider franchising as an option. There are loans and support available from the government for small businesses.
Franchising Myth #7. The franchisor will find all my customers for me.
If you think you can drop some money, open your doors, and customers will flock to you because your franchisor will take care of building your customer base, you are misguided. The franchisor is there to help you develop revenues and customers, but they won't do it for you. You will need to go out to build a local base of consumers for your location.
This doesn't mean you need sales experience. You can hire salespeople if that isn't your strength, but it does mean you need to expect to put some time and effort into acquisition.
Nothing happens until someone goes and sells something.
Franchising Myth #8. Success is guaranteed.
Assured success is a big misconception. A franchise investment is an investment like any other: there is risk involved.
Success will revolve around you. Past performance is a good indicator of future success, but you must earn success. You will have to make it happen.
Choosing an excellent franchise concept can help, and having the support of a franchisee will increase the odds in your favor, but it is still an investment. The franchisor cannot do it all for you. A franchise is different from a stock investment or land investment because you directly control the return.
Truly great franchisees know this and work hard to create the financial security, freedom, and independence they are looking for in their work and life.
Franchising Myth #9. I have to know the industry.
Are you a mechanical engineer looking to open a mechanical engineering franchise? They don't exist. But you can open a painting franchise or fitness brand. You don't need to know the nuts and bolts of the industry to be successful. The franchisor will give you all the required training to understand how to work within the concept competently.
It is understandable to want to buy a concept that you are familiar with, but that isn't always an option. You may also discover you have a newfound passion for a business you are investing in that had nothing to do with your college degree or previous work. Being open to the many options and opportunities out there will help you find the best franchise for you.
If you think you are ready to become a franchisee and look into your investment options, contact the consultants at HIRE YOURSELF. We are here to help you find the best franchise fit for you to start controlling your own destiny.