The concept of franchising has grown tremendously over the last few years. However, despite the increasing popularity of franchising, and multiple benefits offered by such business choice franchising suffers from certain myths, which if clarified can bring remarkable boost to the franchise industry. Regardless of being a rewarding business, there are a number of misconceptions about franchise business ownership. Let us find out about the common myths about franchise:
Treating independent and franchise business equally: The most notable myth about franchising is that, aspirants perceive both independent business model and franchise business model as same. But there is a world of difference between the two. Like franchisee get the benefit of brand image with complete support from the franchisor. Whereas, in developing an independent business, the entrepreneur does not have any support system and has to take up the whole responsibility of developing his business on his own. Thus, aspiring entrepreneurs must understand the difference between an independent business and franchise business.
Opportunity lies in selecting a familiar business: Aspiring entrepreneurs consider that selecting a successful franchise concept or a familiar business assures success, which is a myth. There are various lucrative franchise concepts available in the market, so aspirants should not restrict themselves from exploring such new franchise concept as franchisor is always there to support franchisees in making the business a suceess.
Franchisor being the boss: Many aspiring entrepreneurs doubt that they will not have any freedom to run the business their own way as the franchisor would run his business according to his wish. But as per the franchise outlet, there are only few limitations that a franchisee has like the use of original signage, colour combination and interiors of the store etc. Except these, franchisee can use his creativity and come up with new ideas and suggestions. Franchisors are there to guide the franchisees to follow the original décor and designs. Beyond that, franchisees are free to delegate their wishes in any way they want.
High cost investment: Another myth related to franchising business is that it requires a very high initial investment (franchise fee) and regular royalties. However, every businesses started from scratch requires lot of initial investments. Moreover, there is a lot of variety in franchise opportunities. Aspirants with low investment can take up low-cost franchises, which are becoming very popular in the Indian franchise industry.
Low-cost franchises offer less benefit: There is a common myth that bigger the franchise, the better is the chance of success. It is true that a big franchise company can give better training and stronger marketing systems. But smaller franchisors and low-cost opportunities too can provide better opportunity and offer better returns.
Franchisors prefer personal interest: Many aspirants consider franchisors as selfish businessmen who want to become richer and more successful with the help of franchisees. However the truth is that a franchisor can succeed only if his franchisees are doing well. Besides this, parent company also provides training, marketing guidance etc., to the new franchisee thereby reducing the risk of failure also.
A full time business: Franchising is not a full time business. The popularity of franchise concepts among women entrepreneurs is a testimony of this fact. However, success is not easy to earn thus, unlike any other businesses, franchising business also requires dedication and time, however, it is a myth that it requires full time engagement.
Thus, myths about franchising opportunities no doubt create enormous anticipation amongst young aspirants. Myths if clarified well in time, can attract more number of potential franchisees to the franchising arena, bringing huge success to the franchise industry in India
