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Debunking Franchise Myths

We all know the upside to franchising: proven franchise system, 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.

FlipFlop Dogs: Why We Started the Veteran Franchise Giveaway

veteran, as a small token of our appreciation and gratitude for all they have done for our country.

Franchise Law For Beginners (Part I)

Both franchisors and franchisees have ample reason to question whether the legal system exists to serve franchising, or if it’s the other way around.

How Franchisees Can Grow Their Sales

However, once the ribbons come down and time passes, franchisees begin to recognize the challenge ahead and that, in many ways, they're on their own: regardless of the amount of support their franchisor provides, the franchisee is ultimately responsible for generating sales for his or her new business.