Franchising is a great way to be in business for yourself with lower risks than a traditional start-up. There are lots of books and internet sites that people can use to educate themselves; so much information, in fact, that it can be overwhelming. How do you sort fact from fiction? Here are some common myths about franchising.
Myth - All franchisees are successful
Fact - Success is never guaranteed. Franchisees do enjoy a better chance of success than other start-ups, but you still have to work hard and follow the processes taught by the franchisors.
Myth - A high cost franchise will give higher returns
Fact - A high cost franchise does not guarantee higher returns, and over time you might make less money with a high cost franchise versus a low cost one. The important thing is to find a franchise that fits your requirements (financial and otherwise) to ensure a higher likelihood of success.
Myth - You don't need help from a lawyer to buy a franchise
Fact - The FDD and Franchise Agreement are legal documents. It is important to have a lawyer review all legal documents before you sign. Your lawyer should have a background in franchising to make sure you are getting the best advice possible.
Myth - After buying your franchise, you are the boss
Fact - Yes, it is your business. However, your franchise is part of a system with established processes. The franchisor can legally require you to order supplies for a certain vendor, have your business open certain hours, get their approval for marketing campaigns, etc. Read the FDD/Franchise Agreement to know what you can and can't control.
Monday, October 11, 2010
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Finding the best franchise opportunities is not a very easy task. It is true that there are many options to choose from, but the difficulty is, which one to select. The internet has emerged as a powerful medium and feeds the web users with exhaustive and relevant information regarding any topic that they want to know about. Franchising has proved effective for those business holders who have been able to make a good choice for observing a steady business growth. Before making a thorough search over the internet in order to grab the best franchise opportunities, it is crucial that you do some homework trying to assess things for yourself.
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