Own your job
5 common myths about franchise ownership debunked
Like many Americans, you may be looking for a better way to make a living than a traditional 9-5. Over the past decade, we have seen a massive shift away from the 9-5 corporate life in favor of flexibility, fulfillment, and freedom.
One question you may have though, is why a franchise? Here we debunk common myths that many Americans have concerning franchise ownership, so can you decide if it might be something that’s right for you.
1. Franchises are really expensive
Owning a franchise is just like owning your very own business. Similar to starting your own business, there are always going to be startup fees in order to open your doors. Franchise fees can vary anywhere from $5,000 to $50,000 or maybe more sometimes. There are also other costs to keep in mind, such as equipment and advertising costs. However, banks and lending institutions are far more likely to loan you the money to open a franchise over starting your own business. This means that you can start a franchise with 100% financing sometimes, and not have to put down much of your own money at all.
Because of the willingness to lend, starting a franchise in most cases is the most affordable business to start. Also, interest rates on franchise loans can be very low depending on the method of financing, and some even have 0% introductory rates. So, if you think you have to have tons of money to start a franchise, think again!
2. Franchises are too complicated and hard to start
Like any business, there are definitely steps you have to take in order to start your own franchise. Unlike starting your own business from scratch though, franchises are basically businesses handed to you on a silver platter.
Instead of having to create your own company, processes, procedures,
products, rules, marketing materials, etc., with a franchise all of this is done for you. So once you familiarize yourself with the franchise you choose, you’re already in business and making money in a matter of weeks, not years.
3. You have to own a brick and- mortar store
When most people think of franchises, the first thing that may come to mind is a fast-food restaurant like Subway (one of the largest franchises in the U.S.). However, there are thousands of amazing franchises available right now, many of which do not require any kind of physical location. There are home-based franchises that can be run from the convenience of your own home, mobile franchises where you go to your customer, and other that require only a truck or cart (think food trucks or Dippin’ Dots).
Many of these mobile or home-based franchises are incredibly
affordable, requiring much less capital than a traditional brick-andmortar, making them available to those that want to start small but still make a great living.
4. You must have business
experience or an MBA to
own a franchise
Many people think that in order to run a franchise, you have to either have lots of business experience or an MBA from a fancy business school. This couldn’t be farther from the truth. Because franchises are simply extension of a larger business, owning your own franchise is probably a lot easier than you think. All the hard work of trial and error in order to ensure the business is successful has already been done.
Many new franchise owners have no business experience at all, but because of the excellent training that most franchisors offer, they are up and running successfully in no time. An entrepreneurial spirit and a little hard work are much more important than a business degree or prior business experience.
5. Starting a franchise is
way too risky, driving for
Uber is safer
Although you can make a living driving for Uber, the drawbacks usually outweigh the benefits. With your own franchise, you are able to
differentiate yourself and your business because you get to choose the brand you want, and get to do something you are truly passionate about. According to CNBC, only 4% of Uber drivers last more than 1 year.
Although there are always risks to owning your own franchise, you can mitigate your risk in several ways. For instance, you can choose a smaller franchise that is home-based or mobile, making your total investment surprisingly low. You can also choose a franchise that is rising in popularity, in an industry that you will love working in. And of course, if you qualify for financing, you can usually find a loan that does not require any collateral or assets to be put up. Besides, driving around all day, everyday gets boring fast.
what are you waiting for?
We just debunked five of the most common franchise ownership myths. No matter if you’re a first time business owner or have years of experience, franchises offer something for everyone. It’s no wonder the franchise industry has been growing at such rapid pace in the U.S. According to the International Franchise Association, the industry is poised to expand another 1.6 percent in 2017, which is an increase of about 11,500 new franchises.
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