The Franchise Myth Buster

There are a lot of myths about what a franchise really is out there. So, I want to go back to basics and tell you a little bit about what a franchise really is.?

The Franchise System

A franchise is a license to use names, trademarks, products, and business systems in exchange for an upfront franchise fee and ongoing royalty payments. All franchises start out as a startup company. They see that they have a simple business model that can be replicated in like markets. They take that opportunity and they sell those products, systems, and the experience of their team to you, to implement in your local market.?

In Business For Yourself, Not By Yourself

Some believe that when you buy a franchise, you aren’t really the owner of that business. They think the franchisor is, and that all the revenue from the franchise goes to the franchisor. That is a myth.??

When you become the franchise owner of a specific brand, you own a territory, usually in the same community where you live.? You are the local owner.? It's up to you to apply that system you purchased in your local market to drive customers and revenue. So, when I think about franchising, you're really in business for yourself, but not by yourself.? It’s a great hybrid between being employed and being an entrepreneur.

There is a Team Behind You

Buying a franchise gives you access to an experienced team.? When I was working on the franchisor side of this world, I always told franchisees, “If you've looked for an answer to a question for more than 10 minutes, you need to pick up the phone and call us (the Franchisor).” That's what you're paying for and that is one of the ways your royalty dollars are used - support and training!??

The guidance and assistance on the backend is there to help you achieve success in business ownership.? Look at it as a built-in consultant that has specific expertise in the exact same business that you’re operating.

If you want to learn more about franchising, or if you'd like to talk about some of the other myths out there, give me a call. I’m happy to help bust those myths!