What have you heard about franchising? There is a high possibility that some of what you have heard are franchise myths. It’s just fast food. It’s expensive. It’s easy…
Let’s take a look at the top 10 franchise myths and misconceptions!
#1 Franchises are all fast-food restaurants or retail businesses.
This couldn’t be further from the truth. There are franchise businesses in almost every sector from gyms to accountants and even insurance claims management such as us here at Aspray.
An online franchise directory will allow you to look at the variety of franchises available and even request more information if something piques your interest.
#2 Franchises are really expensive.
Just like they come in a variety of industries; franchises also come with a variety of price tags. There are a few things to consider when looking at financing a franchise, such as whether you need a premises or how much working capital will be required.
For any franchise, you should produce a business plan as part of the recruitment process and your due diligence. This should include the financials such as costings, overheads, any borrowing required and cashflow forecasts, including any royalty payments required.
This will give you a better picture of your financial viability to purchase and operate the franchise.
#3 Buying a franchise guarantees success.
No franchise can guarantee success to every franchisee. Joining a franchise provides some advantages that a start-up business will not have, such as a tried and tested business model and a developed brand. However, this does not guarantee that your particular franchise will be profitable, that will ultimately be down to you and the work you put into building your business.
#4 Anyone can buy a franchise if they have the money to invest.
Purchasing a franchise is a long-term commitment between yourself and the franchisor. If you do not do well neither does the franchisor.
For the franchisor, selling a franchise to the wrong person puts their reputation and financial success at risk. As with Aspray, most franchisors have a robust recruitment process which involves assessing you as much as you assess them. This is to ensure that the franchise partnership is right for all parties before going ahead.
#5 You need experience to run a franchise.
Depending on the industry you have chosen, there may be some franchisors who look for a particular skillset from their franchisees.
During the recruitment process, the franchisor will look at your background and transferable skills to assess whether you are suitable for their business.
Training and support should be offered by the franchisor to teach you the role and help you with business growth and development, operations and finance.
Thinking of Franchising with Aspray?
Have a chat with our recruitment team to find out more about the Aspray franchise opportunity, our award-winning service and the robust recruitment process.
#6 Franchising is easier than staring a business from scratch.
Although there are many advantages to starting a franchise as oppose to a start-up business, it is by no means an easy option. Becoming a franchisee involves lots of hard work especially in the beginning as you get your business off the ground.
#7 The franchisee is not really in charge.
Not true. As a franchisee, you will be the owner of your business and its success will ultimately be down to you. The franchisor will provide you with the framework and tools, but you must put these into practice to the best of your ability. You will have leeway to make your own decision about the direction of your business and the day-to-day running of the business.
#8 Franchises are just a passive income.
Although there are some franchise opportunities that can be operated as a side venture, some, like Aspray, require the franchisee to commit to the business full time. Profits from the franchise will depend on the type of franchise chosen and, of course, the effort you put into make your business a success.
#9 You can’t be creative as a franchise.
This is not the case at all. As a business owner you will have the freedom to make decisions, devise strategy and put your own personal stamp on your franchise.
Although there are frameworks and guidelines to follow, many franchisors will gather feedback from their franchisees to implement change and ultimately improve the brand. After all, it is often the franchisees that are on the front line and their feedback and suggestions are invaluable.
#10 The franchisee owns the brand.
This a common misconception. The franchise agreement allows the franchisee to trade and operate using the brand and sets out terms and conditions for its operation. However, the brand is still owned by the franchisor.
When looking into a franchise, it is always advised that you have a franchise specialist solicitor review the agreement before signing as terms will vary from franchise to franchise.
Avoiding Franchise Myths
There is lots of research to be done when buying a franchise. As these myths show, it’s important to find reputable sources to conduct your research. Independent associations, such as the British Franchise Associations (BFA), are a good place to start and learn more about the franchising industry.
When you have selected a few businesses to investigate further, speak with the franchisor. Most will be more than happy to aid with your research.
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