Common myths about franchising

Franchising is gaining considerable momentum with every passing day. People from different walks of life and different ages are opting for franchising business opportunities. But many are still wary about venturing into this space. Their hesitation stems mainly from misinformation that exists about this landscape.

Common Myths

Taking misconceptions at their face value without verifying whether there is any basis for them can keep you from choosing to become part of a very lucrative business trend in modern times. Here we take a look at some common myths that people have about franchising and what the truth is:

1. It isn't wise to sink funds in a business you have no idea about

This isn't true. Most people prefer to stay within the realms of their expertise; they are reluctant to step out of their comfort zones. But franchise businesses provide potential franchisees several lucrative opportunities. Well-established franchise networks offer excellent support and training. These well designed and systematic processes help new entrants in the space find their footing. The franchisors also provide ongoing support as needed, which can help franchisees stay competitive in the market and make a success of their venture.

2. Franchisees have minimal freedom in this setting because the franchisor dictates every aspect of the business

Many people are considering trying their hand at a business venture, work or have worked at 9-5 jobs in the past. One of the main reasons they want to move out of the typical corporate work scene is to have more freedom in what they do. But in a franchise, the franchisee does get a lot of freedom. Sure, you are required to work within a basic business framework. But you have control over almost all other aspects. You have the freedom to hire the people you need, manage daily transactions using the tools that work best for you, and plan your marketing strategy to reach your target audiences.

3. There is no scope for creativity in a franchise business

This is another common misconception. The franchisor can help franchisees only up to a certain point. While you have to follow various protocols such as branding, pricing, uniforms, etc. you still have the freedom to incorporate your ideas into your franchise. Most well-established and seasoned franchisors recognise that some of the best ideas come from their franchisee partners. So, if you are innovative and creative, you have the opportunity to put forth those ideas to your franchisor.

4. You don't have to decide which franchise to choose. You have to wait for the right one to come along.

This can be no further from the truth. Waiting isn't going to get you the type of franchising opportunity you are waiting for. It would be best if you did a lot of legwork and conduct research to find out what business opportunities are out there. Also, you need to do due dillegence before deciding which network you want to be associated with. It's crucial to be prudent with your decision and learn more about various franchises before making your final decision.

5. I just can't fail if I opt for a franchisee business

The level of risk while investing in an established franchise is indeed lower than an independent business that you set up from scratch. But even this space has certain risks. You need to be realistic and aware of these risks before deciding whether a particular franchise is a right fit for you. Conducting proper research, Due Diligence, and making sure that you follow the franchisor's directives correctly can set you on the path to success.

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