Written by the Franchise Matchmakers Team
What Are 5 Myths of Franchise Ownership?
Even though we are based in the Denver, Colorado area, we service franchise buyers across the US. But embarking on any business venture, whether in Denver, Colorado, or Chicago, Illinois, is a major life decision for most entrepreneurs. If you decide to go the franchise route, it is vital to know the specifics of the industry you are getting involved in before buying into a franchise. Individuals are leaving corporate America every day to start their own small businesses. Owning a franchise is a great way to get started with the security of operating within a proven business model.
Choosing a Franchise
One of the top reasons entrepreneurs choose to buy franchise is because of the numerous opportunities that are available to suit your specific interests, goals and your level of investment. Thankfully, you are not alone in navigating all of these franchise choices. A franchise broker can help you find the perfect franchise. They also provide assistance finding funding for their clients to get their business started.
If you are considering owning a franchise, it is vital to do your homework before making any concrete decisions. There are many pros and cons and myths abound about franchise ownership. And keep in mind that working with a franchise broker costs you nothing! Zero. Zip. Nada. Because independent franchise brokers get paid by the franchise companies directly. Independent franchise brokers work for a wide variety of franchise companies so the broker’s goal is aligned with yours — to match you with the RIGHT franchise!
So lets dispel some of the myths and misconceptions of franchise ownership below.
What Are the Most Common Misconceptions?
- You need to be highly experienced in the industry you choose. When you work with a franchisor to buy into a franchise business, they aren’t always looking for individuals who have years of experience in the specific field the company specializes in. They are more interested in knowing that you have solid communication skills, a strong work ethic, and leadership qualities. A good franchise will have a training program and support system that helps you navigate the rest of the business and learn along the way.
- Success is guaranteed. Although franchises are an excellent way to get involved in business ownership with a company that has a proven record of success, there is no way to ensure that your franchise will survive. The company will provide you with the tools you need to make your business a success, but hard work and dedication are imperative, and sometimes the business just doesn’t take off the way you expect it will. You must always be prepared for setbacks and the possibility that your franchise will not make it in the competitive business world.
- You won’t be able to get creative with your business. Many people believe that when they buy into a franchise, they must adhere to strict policies that do not allow them any creativity in the way they run the business, but this isn’t true. The company will provide you with the framework you need to promote the brand and develop your location. Still, you will have options in the way you choose to tackle marketing, special events, hiring, management, and other aspects of running the business.
- The corporation will have ultimate control. Although the company will help you get off the ground at first, the scale to which you take your business is entirely up to you, and you do have control over your business plan.
- You can’t afford a franchise. The initial cost of owning a franchise can be significant. For example, the franchise companies that Franchise Matchmakers brokers deal with typically range from $100,000 to $500,000 (total investment), but others can be as much as a million or more. But, only 25-30% of your own money will be required to finance the franchise and the remainder can be financed, as long as you qualify for funding. The benefit of working with a franchise broker is that they can identify the right franchise AND recommend funding sources and lenders to help you get started on your road to franchise ownership.
If you have considered all of the pros and cons of franchise ownership and are ready to get started on your business venture, reach out to the experienced team at Franchise Matchmakers for help today at (888) 347-5187.