Reluctant of investing into franchise because of some things you’ve heard? Let’s debunk those misconceptions
Franchising has become popular in almost every industry now. It is an attractive business opportunity for budding entrepreneurs. However, with the growing popularity come a number of misconceptions. These misconceptions can be dangerously misleading for a person thinking of entering into franchising.
If you are thinking of venturing into a franchise business but are deterring because of some myths you have heard? Then let’s debunk some of the common myths & misconceptions regarding franchising.
Franchising Doesn’t Offer Any Freedom
This is one of the most common myths of franchising. People think that in a franchise, the franchisor has everything under control, will take every decision and you won’t have any say in them. However, this couldn’t be further from the truth. Franchisor won’t be breathing down your neck all the time.
Although there will be certain rules and regulation who will have to adhere with, you’re given full flexibility with selecting the location, staffing, marketing & promotion etc.
One of the best things about franchising is that it is available for every budget. You can a profitable franchise starting from even INR 30000 or less and may be run from a home office. You are only required to pay the initial franchise fee. Apart from that, all the other expenses you encounter are what you can expect with a normal business.
It’s Impossible to fail with a Franchise business
This is the most common misconception people have regarding a franchise business. A franchise business does offer you the benefit of a proven and successful business model, but just like any other business, it is not fail-proof. Owning a franchise has a higher success rate you work hard and follow the guidelines from the franchisor. Franchisors promise to offer the tools to succeed, not guaranteed success.
You cannot be Creative
This is another unfounded statement. Even though the franchisor will provide you with a certain framework to adhere with, but you will have the room for creativity and can run the business how you wish. You can utilize your creativity every day to promote your brand and develop the business. For example, the Egg McMuffin was an idea created by a McDonald’s franchisee.
Buying the fastest growing franchise is the best option
This is the biggest misconception & blunder, people commit while opting for a franchise. Just because a franchise is doing amazingly well in a location, doesn’t mean that will work for you as well. One should invest in a franchise that closely matches their skill sets, budget and lifestyle wants and needs.
Food Franchise is the best investment decision
People think that food franchises are great investments because they are recession resistant because after all, everyone has got to eat. Though it’s true, because of this notion only, the food business is almost everywhere even in the remotest corner of a place. This increases competition and reduces the profit share.
Though the most famous franchises are food franchises only, there are lots of other successful franchises in other fields. Almost 60% of franchises are in non-food sectors and are doing extremely well.