The appeal of being your own boss, working your own hours and enjoying a better work/life balance are great reasons to buy a franchise. While this may be true in some cases, it’s important to remember that each franchise system is different. Let’s bust the common franchising myths:
Myth 1.
It’s best to buy a franchise with strong brand recognition.
The Brand can work for you or against you if it does something to damage its reputation. Look into the brand carefully and choose a brand with a good reputation, a history of growth and happy franchisees.
Myth 2
The franchisor takes a percentage of the franchisee’s sales income.
This is not true for all franchise systems. Some franchise systems take a fixed fee, allowing the franchisee to grow their business turnover without limits and without additional fees
Myth 3.
The franchisee can make all the business decisions.
There are certain rules to be followed in any franchise system. A proven structure is one of the main benefits of joining a franchise system. There are many day-to-day business decisions that must be made independently, as long as they fall within the broad franchise model. It’s your business.
Myth 4.
The franchisee is guaranteed a minimum income.
Not all franchise brands offer a guaranteed income. An income guarantee is there to help in the early stages of starting a franchise business, just like a safety net. Ask the franchisor for details on how the income guarantee works.
Myth 5.
The franchisor is responsible for all advertising and marketing.
Franchisees generally pay an advertising or marketing fee to the franchisor, who is responsible for effective advertising to generate leads. The effectiveness of this advertising should be reviewed regularly. Ask your franchisor what you can do to promote your business with Local Area Marketing.
Attend an information session and take your time to do the homework. Learn the fee structure and develop a business plan with financial projections. Speak with other franchisees and talk with your accountant before you decide if being your own boss and franchising is right for you
Contact Jim’s Group on 131546 or visit www.jims.net to learn more about Jims service divisions.
Or, click this link to learn more about owning a Jims franchise.
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