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Franchising Myth Six: Many Franchises Means Critical Mass of Market Penetration

Too many prospective franchise buyers I know assume that a franchise is successful because it is “big enough” to sell franchises or because it already has hundreds of franchises in operation.

Franchising Myth Five: Franchising Provides a “Proven Franchise Business System”

Franchising provides a "proven franchise business system" is a myth I hear from prospective franchisees all the time.

Franchising Myth Four: The Typical Franchisee Gains a Valuable Brand Asset

Let's play a little game. Review Blue MauMau's alphabetized directory of franchises. HERE is the link. Take a few minutes to browse and then ask yourself how many companies you recognize. When you're done, come back to this article.

Franchising Myth Three: Franchisees Own Their Franchised Business

Many franchisees consider themselves to be business owners. A franchisee might hire and manage employees, sign the lease on a store or restaurant, handle customers, keep the books and take home profits at the end of each month.

Franchising Myth Two: In Business for Yourself but Not by Yourself

Many prospective franchise owners are attracted to the concept of buying a franchise because they believe it combines the freedom of owning a business with the safety of a benevolent guiding hand. Franchisors cultivate this concept. The catch phrase of the International Franchise Association is “In business for yourself, but not by yourself!”

Franchising Myth One: Franchises Are Safe Investments

Perhaps the most common and pervasive franchise myth is that franchising per se is a safe investment. Fed by a steady diet of industry hyperbole, the conventional wisdom that feeds this myth contends that when you buy a franchise you are investing in a proven brand and an established business system that will virtually guarantee business success.

Franchising Myths

Owning or purchasing a franchise is a life-changing decision that has huge implications for an individual’s finances, career satisfaction and overall happiness. The promise of franchising is business ownership supported by a proven brand, an established market, beneficial operating system and increased buying and marketing power. In the current franchising marketplace, the promise is often not met by reality.