franchising myths and misconceptions

Franchising Myths and Misconceptions

Back in the 1990’s when I first entered the world of franchising as a franchisor I remember being told a whole range of Franchising Myths and Misconceptions that in reality weren’t true.

  • I was told by one person that you shouldn’t franchise unless you have $5 million in the bank.
  • Another told me you had to be operating the business for a minimum of 3 years before you could even think about franchising.
  • Another said you can’t franchise a business for less than $150 000.
  • More recently I heard an accountant tell a potential client that a business can’t franchise unless it’s turning over more than $1 000 000 per year.

It astounds me how these myths and misconceptions are sustained despite being without any factual basis.

Making the decision whether or not to franchise your business is not easy. At risk is your investment, the reputation of your business and the time and resources required to make your business franchise ready..

Of course the rewards are there too. Franchising provides your business with the opportunity for expansion at a more cost effective price, on a much larger scale and with a network of motivated owner operators.

But whether you decide to move forward and franchise your business or indeed not to, make sure your decision is based on facts and not fiction. Take the time to speak with a franchise consultant who can give you enough information so you can make an informed decision..