There has been a tremendous growth in the popularity of franchising over previous years; tremendous enough to spur the growth of entities such as Franchise Match. However, such popularity comes at a cost. Admiration of its perks comes with numerous misconceptions, some of which are described below:
I'll get rich quick- There's no quick path to becoming rich and influential in the world of business. Franchisors do offer a great head start, but they can never promise instant success from the outset. In other words, success in franchising comes just like it does with startups: the owner's innate competence, determination, and a myriad of other factors.
A well-known franchise is the best choice- Brand names like Jimmy John's, Starbucks, or other well-known trademarks might elicit some sort of automatic recall on most people, but that's as far as they could go on their own without a franchisee's personal efforts.
Most franchising experts agree that in order to succeed in the endeavor, the brand should never be the main focus at the start, but rather a type of franchise that best suits an upstart franchisee's needs and desires.
The business will run on its own- A franchise most definitely wouldn't run itself without its proprietor. While franchisees are allowed the luxury to start working from day one when they set up, maintaining this pace is critical. Franchisees need to work as hard as their startup counterparts, often rendering longer hours and additional days in order to catch up.
This is where the lines between startup businesses and established top franchises blur.
Franchising is dictatorial- Franchisees still report to the topmost management of the franchise itself, and that's a given. However, the only thing the highest authorities set in stone is the core management system: one that's already proven successful. Franchisees actually have the freedom to initiate whatever changes they wish, decide who to hire or not, which marketing and advertising strategy to implement, etc.
Franchises are expensive- Franchises are affordable if an up-and-coming franchisee looks at it as an investment. Aside from the initial capital, the only fees an aspiring entrepreneur has to pay to the parent company are the regular royalties while also notwithstanding expenses such as salaries and advertising.
For more information, visit allbusiness.com/franchises/buying-a-franchise/15370714-1.html.