Five Franchise Myths – What You Must Know Before Starting a Franchise


When it comes to starting a franchise, being well-informed is important. You can get information from a number of resources ranging from current franchisors to franchises in the industry you are interested in and various online information centres. These sources can provide useful, reliable and meticulous information but it is necessary to carefully consider all the details. There are some fundamental myths regarding the franchise industry that may arise from the information you discovered. 

Here is a list of five popular myths that debunks misconceptions regarding franchise that you may come across in your search for information: 

To ensure that you start your franchise with all of the necessary facts, you must be able to distinguish between facts and figures.

The franchisee owns the brand

Most of the entrepreneurs believe that the franchisee owns the brand. This is probably the most prevalent franchise fallacy and it stems from a misunderstanding about what franchising actually means. The terms and conditions regarding commencing a franchise are spelled out in the franchise agreement between the franchisor and franchise. These terms vary widely depending on the franchise. A franchisee, never owns the franchise’s brand. 

When you purchase a franchise, you are purchasing the rights to use the company’s name, business model and all related trademarks. Additionally, you buy the right to run the business model in a particular location under a set of predetermined terms. 

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You should always choose a popular brand 

When anyone suggests franchising, a variety of high-profile franchises come across mind that includes Subway, McDonald’s, Uncle Jacks etc. Franchising is often associated with broad multinational endeavours and it is a common misconception that when searching for a suitable franchise, you should search for a company with substantial brand equity and with greater market share.

It is not mandatory that choosing a popular brand for a franchise will yield you high profits.  Widely popular brands have higher entry costs and are more tightly controlled, limiting your ability to make the changes necessary for profitability in your region. Every successful brand begins somewhere and you should not overlook a promising opportunity simply because it is not yet well-known. However, the franchises should be tried and true business model with at least two years of good financial records. 

The franchisor will operate business for you

The third prevalent franchise fallacy is inextricably linked to the first. While, as previously mentioned, you do not own the brand as a franchisee, you have the responsibility of a boss responsible for the success of your company. While the franchisor will have varying degrees of control over your franchise, they will not participate in day to day operations.

Although the franchisor is responsible for your initial training and can hopefully provide help during your tenure as a franchisee, this does not imply that they will run your company. It is your responsibility to invest time and effort required to make your franchises a success.

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To start a franchise, you need great deal of experience

If you’re a prospective franchisee searching for details on franchising, you’ll probably come across the myth that you need a lot of experience to get started. The most significant benefit of commencing a franchise is that you can receive training and encouragement, removing the need for you to have run your company or gained experience with particular structures or industries.

For sure, there are franchise opportunities that require a certain degree of experience, but this will be specified clearly on the franchise profile and such franchises are relatively uncommon. In general, franchisees seek applicants who have the required transferable skills. You may have not worked in sectors like healthcare or education before, but if you are diligent, hardworking and organised, you already possess many of the skills needed to succeed in this field. 

Franchises are very expensive

The belief that a prospective franchisee should invest in a famous brand, fuels the folktale that all franchises are prohibitively costly. There is a wide variety of franchises prices, so no matter what your budget is you will be able to find one that works best for you. It is mandatory to think about the franchise’s operating cost as well as any personal expenses you may have during training. Also, don’t presume that the minimum investment figure quoted represents your overall investment in the company. 

Find a business opportunity if you only have a small amount of money to invest. This is a pre-packed company that helps you to start a company with a particular product or service. Business opportunities are less expensive than franchises, but they come with the drawbacks of a lack of structure, less oversight and no ongoing support. So, you can choose to invest in a Education franchise, if you expect greater return with little investment. 


You need to get rid of aforementioned franchise myths before planning to invest in the franchise business. Get your basics clear then commence a lucrative franchise business.