Franchising is a fantastic way for first time business owners to start their journey! As people want a departure from traditional 9-5 work settings for more flexible work options, a franchise can often afford that exact flexibility with the added benefit of a proven concept behind a new business venture. This offers less risk and more reward for those green to starting a business! Before starting any business, it's vital to do your homework to investigate if it is the right opportunity for you and your lifestyle. I've found that the word "franchise" can be a deterrent but there are also many myths tied to franchising!
1. Franchising is too expensive. While there are franchises that are very expensive to open, just like any business model, there are less expensive options as well. Depending on the type of business, many franchises have a franchise fee under $50k and overall start up capital of less than $100k. And while many consider a franchise fee yet another expense, working with an existing brand concept can save you tens of thousands in product and service testing and market research. I think of a franchise fee as "buying your mistakes away". Most business owners will likely spend the same amount as a franchise fee on their own concept in the first 10 years of doing business when instead they could be focusing their time and money on growing an already proven concept.
2. I can’t manage a business that I don’t have experience in. You absolutely can! The beauty of franchising is that it offers opportunities in every industry and comes with a plan designed for success! This is a great opportunity to pursue a career in a field of your choosing where you will receive training, ongoing support, marketing materials, products, and a business plan from a tried-and-true corporate partner.
3. Success is guaranteed. While brand recognition, location, and a developed business system can take you far, the benefits of franchising do not automatically guarantee you success. Franchisors promise to offer the tools to succeed, not guaranteed success, and if they do, that is something to be very leery of. Owning a franchise is hard work and the only person responsible for the success of your business is you.
4. Choose a franchise with name recognition. Branding can work for or against you – if the national brand has success, you will draw in more people but if the brand is flailing or has experienced a public relations fiasco, your business will feel the pain. As novice entrepreneurs, it is easy to believe that a strong brand will equate to a successful business but people are not as brand loyal as we may think they are. The brand should not be at the top of your list when searching for a franchise – things like ROI, success rates, structure, product quality, and initial investment should be.
5. Franchisors only care about the fees and not about my success. Franchisors want their franchisees to be successful! Without successful franchisees, there would be no franchise and they would not be able to collect royalties. Unsuccessful franchises damage the brand and deter potential franchisees from seeking opportunities. It is in the best interest of the franchisor to help their franchisees run a successful business.
To find out more about franchising with Bella Ballerina, visit the franchise information page on our site HERE and find out if your territory is available!