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At any time when I converse with a brand new candidate, I ceaselessly discover myself answering just a few repeat questions. Primarily, these questions are centered round a fable or false impression that has given them pause in contemplating franchise possession.
Asking an abundance of questions is an important a part of the due diligence course of, so I welcome these questions. However typically, individuals enable these myths to cease their entrepreneurial goals of their tracks. Beneath is a listing of 5 widespread myths I hear about franchising and what I’ve realized after eight years within the enterprise:
1. “I am shopping for myself a job”
“Self-employment” can have a unfavourable connotation about it, whether or not it is outdoors sources casting doubt on the viability of a specific alternative or your individual inside resistance. However in my expertise, there’s a life-style enchancment that comes from enterprise possession.
And let’s be clear, self-employment is not the trail of least resistance — you will must put in an excessive amount of effort to make your goals a actuality. Nonetheless, when the duty of success lies squarely in your shoulders, there’s a sense of satisfaction and objective that comes with the territory.
2. “Is not franchising all quick meals?”
Merely put, NO. There are certainly loads of glorious restaurant franchises, nonetheless these under no circumstances signify an exhaustive listing of franchising alternatives. Particularly in recent times, franchises have expanded into many various industries. In truth, every time there’s a shopper want that isn’t being met, franchises ceaselessly turn into the answer.
Salon providers? There is a franchise for that. Boutique health? Youngster and senior care? Psychological well being providers? House care providers? There are franchises for that. If you happen to can think about a buyer want, then there may be doubtless a franchise on the market to reply the decision.
Associated: Explore the full 2025 Franchise 500 list, complete with category rankings.
3. “Franchising is not scalable”
This can be a fable that originally stored me from contemplating franchising. I did not have any reservations concerning the manufacturers or ideas, however I had all the time thought of a franchise proprietor to be somebody who ran their small store or enterprise, however did not scale beyond. Nonetheless, when a good friend grew his multi-unit operation and bought out in a multimillion-dollar deal, I needed to stroll again my assumptions. Between territory enlargement and multi-unit franchise development alternatives, franchising will be extremely scalable.
Associated: Greg Flynn Owns 1,245 Restaurants and Makes $2 Billion A Year. Here’s How He Did It.
4. “Franchising is low-brow”
On the earth of enterprise possession, franchising is typically thought of to be extra “low-brow” than different companies. Why? Perhaps it is the truth that the thought shouldn’t be yours. Perhaps the connotation of “shopping for a job” comes with a perceived lack of effort. Perhaps it is that many franchise brands do not signify a sure desired social standing.
Certain the idea might not be your brainchild, however that additionally means it has a proof of idea. You will must put in as a lot effort and time as you’ll in a company function, if no more. And look, I will not sit right here and inform you that dwelling restore providers like plumbing and gutter cleansing are attractive. However what I’ll inform you is that franchises usually carry out a few of the most dependable and ongoing important providers and the important nature of the providers they supply retains enterprise entering into economically risky instances making these companies recession-resistant.
5. “Franchises are a supply of passive revenue”
At any time when I converse with a brand new candidate who’s all for franchise possession, some of the essential conversations we’ve is concerning the long run function they’ll have inside their franchise. There are fashions for numerous proprietor roles, together with self-employment, owner-operator, government and semi-absentee. Nonetheless, extra semi-absentee fashions usually require you to have extra startup capital to preclude you from day-to-day operations.
For instance, I owned a fitness franchise that usually required 2-5 hours per week of my time, however the first 90 days of getting it launched required me to work practically full-time along with my company job. You will need to validate the proprietor’s function with present franchise homeowners in any system. Due to this fact, whereas it may be extremely worthwhile and profitable, your funding in a franchise is unlikely to be passive — at the very least not at first. Ultimately, franchise homeowners might transfer right into a extra semi-passive function as soon as they’ve scaled sufficient to rent managers to run the each day operations.
I’ve heard every of those myths many, many instances since turning into a franchise guide. The candidates who’ve gone on to achieve success franchise homeowners had been capable of reposition their relationship with franchising and see the huge alternatives obtainable quite than lean into partially knowledgeable myths concerning the business. Whereas franchising is not for everybody, you have to make enterprise selections with clear data quite than myths or misconceptions.
Associated: Here’s how we determined the annual Franchise 500 ranking — and what we learned from the data.
