Many business aspirants have suspicion towards choosing a franchising model since there prevail some unproven myths in the business world.
When considering starting a franchise, it’s important to be well-informed and carefully consider all the information you receive.
There are many myths and misconceptions about franchising. The present article busts some misconceptions about franchising.
1. Franchising is very expensive
The cost of franchising depends on several factors like the industry, business model, the cost structure specified in the agreement between the franchisee and franchisor and whether the franchise is home based or brick and mortar.
You cannot have a notion that franchising is always expensive. Well, there are some franchises which are way too expensive but then there are others which are extremely affordable as well.
Franchising is actually suitable for every budget. It should be noted that using the franchisor’s system gives franchisees access to corporate resources such as digital marketing professionals, business coaches, and on-staff consulting professionals.
2. You have to be an expert in the field or have experience of running a business in order to become a franchisee
The most primary requirement to become a franchisee is that you are passionate about the franchise business model.
When in search of potential franchisee, franchisors do not look for hard skills or an experience of running a business.
In franchising you follow proven systems and processes. Also, you are trained to execute them.
A good communication skill, ability to take decisions, willingness to follow the system provided and being passionate is what it takes to become a potential franchisee.
3. Success is guaranteed
Business studies show that franchised businesses have greater chances of growing and becoming successful than the stand-alone business.
However, just because you have a franchise doesn’t imply that you will be successful. Hard work and dedication is the key to success like any other business.
Needless to say that franchise has way more benefits, lesser risk and higher chances of profitability than an independent business.
However, that definitely doesn’t mean that the franchise would flourish without your efforts, enthusiasm and passion.
4. Bigger the Franchise Organization, the more successful will that be
Many have a notion that bigger franchise organization implies higher success in the business. Well, that’s certainly not the case in the franchise business.
It is fact that some of the biggest franchise operations are struggling to maintain their rate of growth and smaller franchises are accounting for much of the growth in the industry.
Absence of good location and saturation of market definitely affects the success and growth of the franchise.
5. When owning a franchise, you cannot use creativity and you’re not your boss since franchise is in charge.
It is a big myth that franchisee cannot afford to use and show his creativity. Franchisors provide you with framework and afterwards you get to run the business however you wish.
It is fact that there are some restrictions on your part when it comes to copyright infringement; apart from that, you get enough space to explore and use your creativity in fields like management, hiring, marketing and brand awareness.
There are ample number of stories of franchisees who suggested menu items that became top sellers for major national brands and also those whose worthy attitude and approach towards their employees resulted in ameliorated sales.
To conclude with, franchising is growing faster than most other sectors in the Indian economy.
Consequently, the franchising business is becoming increasingly popular among domestic and international players across many sectors. Hence, no myth should hinder you while considering the franchise business.
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Dhinal Baxi is a founder of franchise Insider. As a founder, he has served hundreds of clients. His experience from the financial sector has helped them to achieve great success in the franchise world.