What are the Biggest Myths About Franchising?

franchising myths

Franchising is an excellent way for first-time entrepreneurs to test their skills and passion in the world of small business ownership. It offers you a taste of what it is like to own a business with the security of a proven business model. Even so, many prospective franchisees may be put off by the myths and misconceptions floating around about franchising. If you would like some clarity, please read on, then contact one of our experienced franchise acquisition attorneys today. Here are some franchising myths we would like to dispel?

Franchising is too expensive

One of the great aspects of franchising is that it is suitable for every budget. You can start many franchises for less than $500,000 and some for less than $10,000. Other than the one-time, upfront franchise fee and royalties, the expenses would not be different from most other businesses. Additionally, they come with several benefits that start-ups do not have.

Corporate controls the business

The franchisor will provide you with certain guidelines and valuable advice to help you gain traction for the first ninety days after you launch. You are in complete control over the scale of your business and how big or small you want to make it. Along with the franchisor, you can develop a business plan that aligns with both parties’ goals.

You have no room for creativity

The franchisor will provide you with the framework and then you get to run the rest of the business however you wish. You can exercise your creativity with management, hiring, etc. If you prefer to be more creative, you can take on the role of marketing and come up with content or fun events to raise brand awareness.

You are guaranteed to succeed

No one wants to hear this, but when buying a franchise, or starting your own business, you have no guarantee that it will succeed. Roughly twenty percent of small businesses in the United States survive their first year. Owning a franchise has a higher likelihood of success because you have the assistance, plus the brand already has a solid reputation. Even though the franchisor will provide you with the necessary tools to succeed, you must still work hard and utilize them. However, working hard and following the guidelines from the franchisor do not guarantee success.

You can’t manage a business you have no experience in

Yes, you can. The beauty of franchising is that it offers opportunities in every industry and comes with a plan designed for success. This provides a great opportunity for you to receive training, ongoing support, marketing materials, products and a business plan from a tried-and-true corporate partner in the field of your choosing.

If you have any further questions, call our franchise law attorneys today.

Contact Our Experienced Franchise Lawyer Today

If you have any franchising issues, contact Fortman Spann, LLC online today to schedule your initial consultation.

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