Owning a franchise has been the most common route entrepreneurs take, so they could easily get their foot in the door. Along with more people embracing this business opportunity, however, comes more misconceptions about it. So, yes, you may easily get your foot in the door, but you could also effortlessly start on the wrong foot if you embrace such misinformation. Beware of the following myths cloaked in sound business advice and know the truth behind them:
Myth #1: Get a well-known franchise brand
Buying a franchise is essentially taking on the brand’s good name and reputation. The more popular the brand is, the more successful you can be. Well, not entirely true. It’s not just the brand name that contributes to your business growth.
There are a lot of dependencies here, including the demand in your locale, the quality of services your employees offer, the location of your store, etc. The biggest factor here would probably be the suitability of the brand’s values to your entrepreneurial strengths and preferences. You may be taking on a big name, but if you don’t have the same business philosophy as your parent company, you’ll likely find yourself wanting to sell it fast.
Myth #2: Buy a food franchise because it’s recession-proof
Yes, food businesses are good opportunities because you will always have hungry customers despite the economic slump. Note that this precise nature of the business, however, makes it a competitive industry. More players are coming in, so you need to consider with much, much thought which food kiosk franchise brand to invest in.
You also need to have strong marketing and operations strategies in place to ensure that you’re the first choice of hungry customers. This is the reason most starting foodpreneurs seek out mentors who can offer discerning business advice when taking part in a cutthroat competition. Your franchisor can be your mentor, but there’s still merit in having a business coach you could turn to always for advice. Expand your networks and see who you can trust out of the different experts in your field.
Myth #3: Go for a franchise brand you really, really love
A lot of people get franchise brands often because they loved the brand ever since, and that they’ve been loyal fans for a long time. Of course, it’s important to believe in the brand you’re buying, but be sure not to get your emotions to take over reason when deciding.
Remember, you’re not just buying a pizza or a pretzel you’ve loved since childhood — you’re purchasing the business. It pays to do your research about the brand and its operations. Ask the franchisor about different aspects of the business, such as costs of ownership, training programs, consumer research and marketing, and the products and services themselves. The right information will hopefully give you a pair of objective eyes to see through this decision.
Again, before you decide to jump into a franchising opportunity, make sure to have the right information about getting started. You may be making costly mistakes by mistakenly following pieces of false advice. Know the truth behind each business counsel.