As the nation’s leading provider of franchise services for more than 15 years, Rhino 7 Franchise Development Corporation is experiencing a growing interest in franchise ownership. Before a potential buyer can even ask himself or herself if they have what it takes to run a franchise, he or she needs the facts.
And the truth is, when it comes to the opportunity to buy a franchise there are lots of misconceptions – myths, if you will, that need to be cleared up before a potential buyer can begin to make an educated decision.
- You must have experience in that type of business. False. A common mistake is believing you need to have expertise in a specific industry in order to be successful. What you do need are transferable skills, and the eagerness to buy into and learn the franchise model. It’s your job to run your business and grow it. So if there’s an area where you are weaker, you hire people who have more experience to help you.
- Franchisees don’t have any freedom. Not true. While the franchisor establishes the basic system for you, you are still in charge. You decide who to hire, how to market your location, and it’s also up to you to think up new ideas to grow your business, including making suggestions to corporate. Think of it this way, the franchisor wants you to succeed. If you don’t, they don’t. It’s as simple as that.
- It’s too expensive to buy a franchise. Incorrect. If you purchase a start-up business, the out-of-pocket expenses are about the same, plus you’d have to invest even more to establish internal processes and systems, as well as branding and marketing. With a franchise, all of that is already done for you. You will have to pay a one-time franchise fee and weekly or monthly royalty payments, depending on the business. With any business decisions, it’s important to do your homework and carefully evaluate your funding options.
- The bigger the name, the bigger the profits. False. With any business, there are no guarantees when it comes to profits. But you increase your chances of financial success by getting all of the information you need before you invest, and setting realistic expectations. It’s also important to keep in mind that just because the franchise company is a good one, it may not be the right one for you.
- Anyone can be a successful franchisee. Not true. While there’s no exact recipe for success, we do know there are several qualities of a successful owner, including having financial awareness, as well as possessing a certain combination of personality traits like salesmanship, managerial finesse, and motivation. After all, it’s not really about the widget, but the business model and the owner’s aptitude.