Franchising is a wonderful opportunity for business owners, especially entrepreneurs who want to make it big. Stats reveal that in the next five years Indian franchise industry will grow by USD 140-150 billion. But there are many misconceptions surrounding Franchise. These misconceptions can be dangerous for those who accept everything as the truth without doing much research.
I don’t want you to go through the same. So, here’s a list of the 7 most widely believed misconceptions about Franchise.
1. You need to have experience with business
Nope. That’s a big fat myth! You don’t have to be an expert in the business, you just need to be dedicated to the franchise business model.
When franchisors look for franchisees, they don’t expect to look for someone with hard skills. What they look for is someone with the qualities of a leader with a solid work ethic and the required communication skills.
What’s more? You are also provided with the required resources like marketing materials, ongoing support, and a solid business plan – all of these are designed keeping your success in mind.
2. Franchising is too expensive
This one of the most common misconceptions that also acts as a barrier for many people to invest in Franchise. Just so you know, Franchise is not that expensive. The investment depends on your budget and your decision. You can start a franchise from as low as $10,000.
All that you have to pay is the one-time upfront franchise fee. Other than that, the other expenses are similar to the other businesses.
Also, Franchise comes with many added benefits like access to digital marketing professionals, on-staff consulting professionals, and others that you cannot enjoy with a start-up. With a start-up, you have to pay for hiring these professionals.
3. A famous franchise can help you achieve great success
While looking for a franchise, you should not go for name recognition. Instead, you should check the ROI, product quality, and success rate.
A famous franchise can help you for some time. But if their public relations are affected negatively, your business will suffer greatly.
Believing way too much in the buyer’s loyalty is a huge mistake. They can part ways as soon as they get better opportunities.
4. Franchisors just work for their fees and not for your success
There is no Franchise without their franchisees. Hence, franchisors want each of their franchisees to be successful. A failed franchise can not only be bad for their reputation but can also hamper future opportunities. The franchisors work their best to see all of their franchisees succeed.
5. Food Franchises are the only option when it comes to huge revenue
Food and fast-food franchises have ruled over this field for a long time. But not anymore. As people are getting aware of more opportunities, they are also shifting to other industries like clothing, FMCG products, etc.
If you look through the annual list of Entrepreneur Magazine’s best list of franchises, you can find a lot of different names there that belong to fitness, communications, hospitality, auto services and not just fast-food retails.
Thus, you can easily find opportunities in the kind of industry you are truly interested in.
6. You are sure to succeed with a Franchise
Owning a Franchise doesn’t offer an assurance of success. If any franchisors are offering this guarantee, they are definitely trying to fool you.
Franchisors definitely provide you with all the tools but the distance to the destination after that needs to be covered by you.
People who don’t can fail even after having these opportunities. But that doesn’t mean you should not invest in a Franchise. There are many successful franchises that help you achieve something bigger like Xtend-Barre Franchise.
7. I don’t have to be actively engaged with the Franchise
If you think you just need to invest financially and enjoy at your home waiting for the revenue to be transferred to your account, then you are wrong.
If all you needed to do was to invest and sit at home without offering any manual labor, there was no need for the franchisors to look for a franchisee. Even if some franchises offer you an absentee option, you still need to oversee the daily operations.
Choosing the right Franchise can help you a lot in your entrepreneurial journey. So, before you believe anything people have to say about franchising, take a peek into this article and then decide the truth-content in it.
All the best!