f you’re going to be the owner of a franchise, it’s important to get the facts before you dive into the job. Take a look below at just a few of the misconceptions people have when it comes to owning this type of business. Knowing what’s true and what’s not will help you become a more successful — and prepared! — franchise owner.
Myth: Franchises are too expensive.
Fact: Generally, owning a franchise has low startup costs, especially when compared to the costs of starting your own business. This makes the barrier to starting a franchise relatively easy. When you start a franchise, you also have access to tons of corporate resources, like marketing professionals, business coaches and consultants, saving you tons of hiring costs.
Myth: You don’t have any control over a franchise.
Fact: Generally, your franchisor will provide you with guidelines, especially when you start off; however, you generally get to run the business however you’d like. This gives you tons of creativity to shape your business the way you see fit. You can be creative with management and hiring. You can usually take on the role of marketing and fundraising, too. The possibilities are endless!
Myth: Your franchise has you covered for financial emergencies.
Fact: Many franchises are successful, but the ones that don’t often have captains at the helm that weren’t financially savvy. Every franchise is different, but you can’t expect yours to bail you out if you mess up. That’s why it’s prudent to ask for a bit more from loan officers or investors than you actually need. This way, you’ll have a cushion for unexpected costs.
Myth: You can start your franchise before you have the funding.
Fact: Many people start a franchise on the cheap because they figure the money will come later. And it might – if you’re smart about it. But even before your franchise starts turning a profit, having SOME money set aside (see the “cushion” idea above) is not only practical but makes you look more attractive to potential investors.