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Every time I communicate with a brand new candidate, I continuously discover myself answering a couple of repeat questions. Primarily, these questions are centered round a delusion or false impression that has given them pause in contemplating franchise possession.
Asking an abundance of questions is an important a part of the due diligence course of, so I welcome these questions. However generally, individuals enable these myths to cease their entrepreneurial goals of their tracks. Beneath is a listing of 5 frequent myths I hear about franchising and what I’ve discovered after eight years within the enterprise:
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1. “I am shopping for myself a job”
“Self-employment” can have a detrimental connotation about it, whether or not it is exterior sources casting doubt on the viability of a specific alternative or your personal inner resistance. However in my expertise, there’s a way of life enchancment that comes from enterprise possession.
And let’s be clear, self-employment isn’t the trail of least resistance — you may must put in an excessive amount of effort to make your goals a actuality. Nonetheless, when the accountability of success lies squarely in your shoulders, there’s a sense of satisfaction and function that comes with the territory.
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2. “Is not franchising all quick meals?”
Merely put, NO. There are certainly loads of glorious restaurant franchises, nonetheless these by no means characterize an exhaustive record of franchising alternatives. Particularly lately, franchises have expanded into many alternative industries. The truth is, at any time when there’s a client want that’s not being met, franchises continuously change into the answer.
Salon companies? There is a franchise for that. Boutique health? Youngster and senior care? Psychological well being companies? House care companies? There are franchises for that. In the event you can think about a buyer want, then there’s doubtless a franchise on the market to reply the decision.
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3. “Franchising is not scalable”
This can be a delusion that originally stored me from contemplating franchising. I did not have any reservations in regards to the manufacturers or ideas, however I had all the time thought of a franchise proprietor to be somebody who ran their small store or enterprise, however did not scale past. Nonetheless, when a pal grew his multi-unit operation and offered out in a multimillion-dollar deal, I needed to stroll again my assumptions. Between territory growth and multi-unit franchise progress alternatives, franchising might be extremely scalable.
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4. “Franchising is low-brow”
On the planet of enterprise possession, franchising is typically thought of to be extra “low-brow” than different companies. Why? Perhaps it is the truth that the thought isn’t yours. Perhaps the connotation of “shopping for a job” comes with a perceived lack of effort. Perhaps it is that many franchise manufacturers do not characterize a sure desired social standing.
Positive the idea might not be your brainchild, however that additionally means it has a proof of idea. You will must put in as a lot effort and time as you’d in a company position, if no more. And look, I will not sit right here and let you know that residence restore companies like plumbing and gutter cleansing are attractive. However what I’ll let you know is that franchises typically carry out a few of the most dependable and ongoing important companies and the important nature of the companies they supply retains enterprise getting in economically unstable instances making these companies recession-resistant.
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5. “Franchises are a supply of passive revenue”
Every time I communicate with a brand new candidate who’s all for franchise possession, one of the crucial vital conversations we have now is relating to the longer term position they’ll have inside their franchise. There are fashions for numerous proprietor roles, together with self-employment, owner-operator, government and semi-absentee. Nonetheless, extra semi-absentee fashions sometimes require you to have extra startup capital to preclude you from day-to-day operations.
For instance, I owned a health franchise that sometimes required 2-5 hours per week of my time, however the first 90 days of getting it launched required me to work almost full-time along with my company job. You will need to validate the proprietor’s position with present franchise house owners in any system. Due to this fact, whereas it may be extremely worthwhile and profitable, your funding in a franchise is unlikely to be passive — at the least not at first. Finally, franchise house owners might transfer right into a extra semi-passive position as soon as they’ve scaled sufficient to rent managers to run the every day operations.
I’ve heard every of those myths many, many instances since changing into a franchise advisor. The candidates who’ve gone on to achieve success franchise house owners had been in a position to reposition their relationship with franchising and see the huge alternatives accessible moderately than lean into partially knowledgeable myths in regards to the trade. Whereas franchising is not for everybody, you will need to make enterprise choices with clear info moderately than myths or misconceptions.
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