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Whenever I refer to a latest candidate, I often answer several repetitive questions. First of all, these questions focus on the myth or misunderstanding, which caused him to stop in considering the property of the franchise.
Taking a lot of questions is an vital a part of the means of due diligence, so I’m satisfied with these questions. But sometimes people allow these myths to stop their entrepreneurial dreams on their songs. Below is a list of 5 popular myths that I hear about franchming and what I learned after eight years in the industry:
1. “I buy a job”
“Self -employment” can have a negative connotation for this, no matter whether or not they are external sources that undermine the profitability of a particular occasion or your personal internal resistance. But in my experience, there is an improvement in the lifestyle that comes from the company’s ownership.
And let’s be vivid self -employment Is NO The path of the slightest resistance – you’ll have to place a lot of effort so that your dreams change into a reality. However, when responsibility for success lies straight on your arms, there is a sense of pride and purpose that is associated with the territory.
2. “Is franchming all fast food?”
Simply put, no. Indeed, there are many excellent franchise of restaurants, but in no way they constitute an exhaustive list of franchise capabilities. Especially in recent years, franchises have expanded to many different industries. In fact, each time there is a need for a consumer who is not fulfilled, franchises often change into a solution.
Salon services? There is a franchise for that. Boutique fitness? Caring for a child and older? Mental health services? Home care services? There are franchises for this. If you may imagine the client’s need, there is probably a franchise that receives the connection.
3. “Franchise is not scalable”
This is a myth that originally stopped me from considering the franchise. I had no objections regarding brands or concepts, but I at all times thought the franchise owner as someone who ran his small store or business, but didn’t scale. However, when a friend bred his multi -communal activity and sold out in a contract with a value of many hundreds of thousands of dollars, I needed to undo my assumptions. Between the expansion of the territory and the development possibilities of the franchise with many franchise units could be highly scalable.
4. “Franchise is low
In the world of ownership of Franchising, he is sometimes considered more “low” than other companies. Why? Maybe it’s the fact that the idea is not yours. Perhaps the connotation of “buying work” is associated with a perceived lack of effort. Perhaps many franchise brands do not represent some desirable social status.
Sure, the concept might not be your idea, but it also implies that it has proof of the concept. You will have to spend the same period of time and effort as in the corporate role, if no more. And look, I is not going to sit here and say that home repair services, corresponding to plumbing and cleansing the gutter, are sexy. But I’ll inform you that franchises often perform one of the most reliable and ongoing essential services, and the significant nature of their services maintains economic activity in economically unstable times, because of which these corporations are proof against recession.
5. “Franchises are a source of passive income”
Whenever I refer to a latest candidate who is interested in the property of the franchise, one of the most significant conversations we conduct is the future role that they are going to play in their franchise. There are models for the different roles of the owner, including self-employment, owner-operator, executive director and half-ABSentee. However, more semi -era models often require greater startup capital to exclude you from every day operations.
For example, I had a fitness franchise, which often required 2-5 hours a week of my time, but the first 90 days of launching required me almost full-time in addition to my corporate work. It is vital to verify the role of the owner with the current franchise owners in any system. Therefore, although it could actually be very profitable and successful, your investment in a franchise is unlikely to be passive – at least at the starting. Ultimately, franchise owners can move on to a more partly passionate role when they scale enough to rent managers to conduct on a regular basis operations.
I have heard each of these myths many times since I became a franchise consultant. Candidates who were successful, the owners of the franchise were in a position to change the location of their relationships with the franchise and see the available possibilities, and to not partially informed myths about the industry. Although franchise is not for everyone, it’s essential to make business decisions with clear information, not myths or misunderstandings.