With a 90-95% success rate and just as much fail rate of solo businesses, it’s really a no-brainer why one would prefer to put their money and endeavours into something proven that already has a business model rather than start from A and B. For example, if you want to start a home service business in the UK, you can either build your own infrastructure, client base or model of work. Or you can trust a well-established company.
Despite the obvious advantages of starting a franchising business instead of a solo endeavour, there are some myths and misconceptions that closely follow any investment research. Here are the five most believable among them that, of course, are easily debunked.
You need to know the ins and outs of the niche
One of the most common and probably the most believable misconceptions is that you need to know everything about the industry you’re getting into before you invest. While learning the first thing about the service sector would undoubtedly help when starting a home service franchise, it’s definitely not mandatory. Moreover, knowing the ins and outs of the industry needs experience and an inside look, something you can get only when you’ve been in the business for some time.
Good franchisors will lead you the way and teach you everything you need to know about the business without the inevitable failures along the way. As a result, you won’t need to lose money on something that’s already been established, and you will get the bonus of fast and unobstructed growth.
Franchises are expensive
This is one myth that sounds convincing, but if you spare 5 minutes to think about it, you will realise that it’s simply illogical. According to BFA, the average price of a Franchise in the UK is £42,200. That might sound a lot, especially if we compare it with the national average salary, which for 2022 is £31,285. However, if you calculate the total cost of starting your own business, you will find out that it’s way pricier. For example, some franchises offers its franchisees millions worth of technology solutions. This alone covers the initial franchising fee.
Furthermore, franchisees can enjoy custom-made CRM, state-of-the-art mobile apps, and a team of in-house experts that will assist with marketing, sales, customer support, IT, finances and anything in between. Investing in a solo business and building the infrastructure that otherwise you receive from the franchisor will not only cost you north of 100k (at the bare minimum) but also waste your time and resources. Thus, investing in a franchise is much more cost-efficient.
Your success is guaranteed
Unfortunately, that’s also a myth. Although 90% of franchisees succeed in establishing themselves in the industry, that success is not guaranteed. Furthermore, the level of success is entirely up to the efforts you put into your work.
Most franchisees make sure to give you every opportunity to succeed, which explains all the benefits and advantages you get as a franchise business owner. However, no one will make your business successful if you don’t put the effort and work into your own business. Franchisors won’t run your business. That’s your job, and if you are not ready to do the work, it’s best to restrain yourself from starting a business, whether franchising or otherwise.
The franchisor controls your business
This is another myth that sounds convincing at first glance, but when you think about it, it starts to sound absurd. Why would the franchisor go through the trouble of investing time and resources only to give you the lion’s share of the profit if they will micromanage your every move? Hiring managers and personnel and collecting all the profits would be much cheaper.
The franchising business is a symbiosis. The franchisor gives the franchisee the infrastructure, business model, training, and support to run their own business while getting a piece of the action in the process. Franchisees generally have the freedom to manage their business as they see fit, as long as it’s within the brand’s guidelines. Typically franchisees restrain from deviating too much from the established business model. After all, it makes far more sense to follow a proven road of success rather than going through the woods to find a new one.
There is no creativity in franchising
To follow up on the previous point, that’s not true at all. Creativity is welcomed as long as it is within the guidelines. Indeed, changing the products or services is not allowed in most franchises (which is the genesis of this myth). Franchisees are more than welcome to express their creativity in finding new customers and recruiting professionals. Furthermore, in most franchise models, franchisees will receive support from their head office, they can spend less time on trivial stuff and more time on improving their business.
While many myths sound quite convincing at first glance, most of them are easily dismissible when you spend a few minutes thinking about them. The best way to protect yourself against such myths is research, which is one of the cornerstones of a successful business.