You owe it to yourself and your family to read my list of the top 10 franchise business ownership myths.
If you don’t read them-and understand why they are myths, something bad could come your way and it’s going to involve a very loud sucking noise.
That’s right: You could be sucked down franchising’s black hole – along with most or all of your money.
I’m going to wager that you’d like to avoid being sucked down any hole, black or otherwise.
So, let’s do this.
The Top 10 Franchise Ownership Myths
In no specific order, here they are.
- It’s almost impossible to fail
- Franchises provide a proven system, so they are automatic money machines
- To be successful, all you have to do is follow the franchise’s system
- Franchise companies help you with everything
- Franchises have lower risk than independent business startups
- Franchising is easy, because everything is all set up for you
- Franchises are turn-key businesses; all you have to do is “turn the key” to the door of your franchise business every morning
- Franchises are great for entrepreneurs
- Absolutely nothing is negotiable in a typical franchise agreement
- Franchise business loans are a lot easier to get than non-franchise loans
Why The Top 10 Franchise Business Ownership Myths Are Myths
Myth: Any invented story, idea, or concept. Related: fable, legend.
Now that you know the definition of a myth is, let’s find out why the franchise business myths listed above are…you know…myths.
1. It’s impossible to fail as the owner of a franchise.
We can even go with “almost impossible,” as that powerful two-word punch can get the job done just about as well.
The fact is that anyone can fail in any type of business. And, while the franchise business model is the best business model that’s ever been invented, it’s not a perfect one. Either are humans. Stuff happens. Franchises that were once hot get cold. Locations that were once thought to the “best” sometimes turn out to be dogs.
2. About those proven systems…
Who have they been proven to and in what volumes?
It’s one thing to create a pizza masterpiece for friends and family; it’s quite another to produce it over and over again in a very consistent and systematized manner.
An entrepreneur starts an airport pick-up and delivery company. This person grows the business…in this case by adding vehicles. The topic of turning the business into a franchise is bounced around almost daily, and he or she likes that idea. Lots of entrepreneurs consider the franchise model at least once as growth plans are being discussed.
But, ultimately, the decision will rest on whether or not the business is easily replicable, and whether or not systems are already in place (or can easily be put in place) to make the business highly efficient and highly profitable…but not an automatic money machine. Those don’t exist.
The short video below (recorded in Las Vegas) includes a couple of tips for those thinking about turning their business into a franchise.
3. Following the franchise system=instant success.
If becoming a successful franchise owner only involved some good old-fashioned rule-following, more franchisees would be successful. In other words, there are lots of things that go into successful franchise ownership.
Improving your chances of success as a franchise owner really has to do with the things you do before you buy the franchise that you’re interested in buying. If you’re interested in learning about the things you need to do…things that will greatly improve your odds of success and at the same time, massively lower your financial risk, stick with me.
4. Franchisors provide it all.
Mostly they do. But all?
Here’s what franchisors provide:
- Operating system
- Their experience
- Formal training
- Purchasing Power
- Marketing systems
- Real Estate assistance
You’ll receive those things as a franchise owner. What you won’t receive has to do with what you bring to the table.
- Business acumen
- Business ethics
- Management skills
- Operations skills
- HR skills
You can probably add to that list, but you get what I mean.
You have to bring the best you to your business.
If you can do that, and use the business systems and support that your franchisor provides, you’re chances of success in franchising greatly increase.
Part 2 of The Top 10 Franchise Business Ownership Myths That Need To Put Out To Pasture Once And For All. It will feature more myths that are sometimes portrayed as the truth. Make it your mission to learn the facts of franchising. Doing so will put you way ahead of the pack.
I leave you with Jim Blasingame’s radio interview of me that focuses on figuring out if you should even look at franchises. You should find it useful. Just click the image below and turn your speakers on. Enjoy!