Debunking Franchise Myths We all know the upside to franchising: proven systems, training and support, purchasing power, brand recognition, and lower risk of failure top the list. But before you utter those three little words, "it's all good," take a reality check. Consider this list of common myths surrounding franchising and get the true facts.
Myth: Success is guaranteed.
Fact: Franchising does increase your chances for success over going it alone, but it's not a magic solution. Any venture involves risks; a proven system merely lowers those risks.
Myth: You can be your own boss.
Fact: Yes, you will enjoy some perks as a business owner, but you still have to follow someone else's rules-the franchisor's. You may not have the power to make even the most basic decisions about hours of operation, pricing, suppliers, and marketing.
Myth: It's cheaper than starting from scratch.
Fact: The cost of starting a franchise is about the same as starting your own business when you consider the real estate, build-out, equipment, supplies, and advertising. You might get some price breaks from group purchasing, but royalty fees will offset any savings.
Myth: It's easy.
Fact: Don't assume that once you make your investment it's not going to be as hard as a regular non-franchise business. With a franchise it's going to be an easier transition and a lower chance of failure, but there's no way around it-running a business is hard work.
Myth: Bigger is better.
Fact: Bigger companies do offer some advantages like large-scale advertising, sophisticated systems, and more capital to support the brand. But smaller franchisers are often more flexible and responsive to franchisees.
Myth: A high-priced franchise will yield a bigger ROI.
Fact: Often the opposite is true. The price of the franchise has little to do with profit potential. You need to take into account numerous factors such as market conditions, system efficiency, location, and your own knowledge of the industry.
To learn more about this author, visit Mary Tomzack's Website.
Like this article? Share it with your friends
 |
Related Articles |
|
 Debunking Franchise Myths
|
| |
We all know the upside to franchising: proven systems, training and support, purchasing power, brand recognition, and lower risk of failure top the list. But before you utter those three little words, "it's all good...
|
|
Franchising with all its Success
|
| |
This article shows point on why franchising is a better business venture.
|
|
About 60% of all franchise opportunities have less than 50 units.
|
| |
There are over 2500 franchise opportunities operating in the U.S., some of these franchise opportunities are larger systems but most of them are smaller emerging systems.
About 60% of all franchise opportunities...
|
|
Clearing Up The Myths About Strategic Thinking and Planning
|
| |
I continue to be amazed at the amount of misinformation and the number of myths that exist about strategic thinking and planning. During my entire career, I have heard business owners, senior executives and not-for-...
|
|
The best franchise systems all have effective leadership.
|
| |
The single most important factor in the long term success of the best franchise systems is effective leadership. When you look at the cause of every significant achievement or problem there is always one driving for...
|
|
|
Mary Tomzack
(Visit Mary's Website)
MARY E. TOMZACK is the President and
Founder of FranchiseHelp, Inc. She is a
noted franchise expert and the author of
Tips & Traps When Buying a Franchise
(First publication,1994,McGraw-Hill; new
and completely updated, revised edition,
1999,Source Book Publications). Ms.
Tomzack is often interviewed for franchise
articles in publications such as The New
York Times, "Franchise World" and
"Entrepreneur Magazine."
Reach her at (914) 347-6735 or at m
tomzack@franchisehelp.com or co
mpany@franchisehelp.com
|
|
|
Mary Tomzack's
Complete
List Of
Franchises
Articles
|
|
If you enjoyed this article, get Mary Tomzack's Complete List of Franchises Articles For FREE!
|
|
|
|
