- Fantastic Team
- 4min read
- Published: March 7, 2022
- Views: 116
Five Common Myths About Franchising Debunked
In this century, franchising has become a popular way to do business. According to Franchise-UK, there are more than 48,000 franchised businesses in the United Kingdom alone, employing nearly 1 million people. Franchising can offer entrepreneurs the chance to own their businesses with the support of a well-known, successful brand.
Despite the many advantages of franchising, some myths about it continue to circulate. That’s why we decided to address and debunk the five most common misconceptions about franchising.
Myth 1: Franchises are expensive
One of the most common myths about franchising is that it’s expensive. This may have been true in the past, but it’s no longer the case. According to the British Franchise Association (BFA), the average cost of starting a franchise business is around £42,200. This may seem like a lot of money, but it’s a small investment compared to the cost of starting a business from scratch. Therefore, the cost of franchising should not be a deterrent for entrepreneurs who are interested in initiating their businesses.
If that is not enough, many franchisors offer financing options and other forms of assistance to help their franchisees get started. So, the cost of franchising should not be a barrier for entrepreneurs who are interested in becoming franchisees. Therefore, there is no need to worry about the cost of getting started in franchising.
Myth 2: Corporate controls the business
Another common myth about franchising is that the corporate headquarters controls the business. This is not usually the case. The majority of franchisors give their franchisees a great deal of freedom to run their businesses. This is one of the reasons why franchising is such a popular way to do business. Corporate headquarters has no interest in micromanaging every franchisee since that’s not a successful and sustainable business model.
In addition, corporate HQ often provides training and support to their franchisees and invaluable know-how on how they can continue to grow and succeed. The Franchisor only lays down the guidelines and advises on how the business can become more profitable, bigger, and better. Intelligent business owners usually follow the paved road, and that’s how this myth was born. Why try changing something that works?
Myth 3: There is no creativity in owning a franchise
Some people believe that there is no creativity in owning a franchise. This is simply not true. Franchisees can be creative in many aspects of running the businesses, as long as they stay within the guidelines provided by the Franchisor. While there can’t be changes in products and services, which is indeed the reason for this myth, the owners are free to express their creativity in finding new customers, sub-franchisees, hiring the best professionals, and many other aspects. Creativity is often encouraged in franchising.
Moreover, franchisees have access to a ton of resources and support from the corporate headquarters. This allows them to spend less time worrying about trivial stuff and more time creating new and exciting messages for their customers.
Myth 4: You have guaranteed success
Yes, this is yet another myth about franchising. People often think that they are guaranteed success if they buy a franchise. However, this is not the case. The truth is that no one can ensure business success. Franchising is a way to significantly increase your chances of success, but it’s not a guarantee. Many factors contribute to success or failure, and it’s important to remember this when considering franchising.
However, statistics from IFA show that approximately 90% of franchisees are successful. This is likely due to the many advantages of franchising, such as the support of a well-known brand and the available training and resources. Usually, success is not too far away when the franchisee is a hard-working individual.
Myth 5: You must be an expert in the field
When planning to buy a franchise, many people think they must be an expert in the field. This is not true. One of the great things about franchising is that you can be successful without knowing the first thing about this particular industry. All you need is a bit of managerial experience and some business insights.
There are many different types of franchises available, and each one offers different levels of training and support. Corporate headquarters will often provide training on how to run the business, and there are also many resources available online. So, you don’t need to be an expert in the field to own a successful franchise.
So, there you have it—five common myths about franchising debunked. As you can see, franchising is a great way to start your own business, and it’s not as expensive or complex as you may think. If you’re interested in becoming a franchisee, be sure to do your research and ask lots of questions. That’s what any self-respecting entrepreneur will do before investing their hard-earned money.
- Last update: March 8, 2022
Posted in Industry Insights
Fantastic Services manages 100+ professional home cleaning and maintenance services provided within the UK, EU, Australia, Africa, and North America. With 13+ years of experience behind our back and 530+ successful franchises, we continuously set the bar higher with our cutting-edge technology implementation and marketing approach. Explore our business opportunities on the main website!