Viewpoints revealed by Entrepreneur factors are their own.
The majority of tasks, tax income and wealth originate from high-growth business that begin with an excellent concept and after that scale it. And when it concerns scaling, franchising is a progressively popular choice. The International Franchise Association discovered that American franchises offered more than $825 billion of products and services in 2022– a number that's just anticipated to grow.
Together, the 2 people have years of experience dealing with customer and franchise brand names and teaching it at the Tariq Farid Franchise Institute at Babson College, consisting of as co-hosts of the just recently introduced Stars of Franchising podcast. We've seen direct how franchising deals an outstanding design for business wanting to broaden and scale in addition to people looking for entrepreneurial chances to develop financial and social worth.
Amongst trainees, experienced executives and everybody in between, we regularly experience misconceptions about franchising– from the understanding that franchises run themselves to the view that they do not use space for imagination and development. Here are 3 typical misconceptions we experience, plus our suggestions on why franchising might be ideal for you.
Related: Busting Franchising Myths and Choosing the Right Opportunity
Misconception # 1: Franchising can be successful on auto-pilot
An effective franchise needs various partners. Franchisors who develop a brand name. Franchisees who work to broaden that brand name. Lenders and financiers who set up funding.
Franchising can pave the course to development through a recognized brand name and functional design. Opening a brand-new shop is simpler when you can gain from a business's playbook for success. That does not imply you can sit back and whatever will be taken care of. Having a physical fitness strategy that will yield outcomes isn't the like in fact working out.
A franchisee who opens a brand-new shop needs to browse whatever from property website choice and preparation for launch to management, labor and supply chain management once it's up and running.
Practically every franchisee and franchisor we speak with states that they required grit, strength and an entrepreneurial frame of mind to be successful.
Soozie Lazenby, who owns and runs 4 StretchLab franchises in the Tampa Bay Metro Area, informed us that “Franchises do not run themselves. There's no such thing as a semi-absentee owner.” Neal Faulkner, who went from a single Dunkin' Donuts shop 23 years ago to several areas and 500 workers today, firmly insists that “Franchisees have to work in the service and be prepared to do every single job!”
Franchising is an outstanding chance– however just if you're ready to do the work.
Misconception # 2: Franchising isn't entrepreneurial
Individuals normally envision entrepreneurship as beginning with absolutely nothing and bringing a concept to life. It takes as much imagination to scale something that currently exists.
Neal, the Dunkin' Donuts franchisee, matured on a farm in Kansas, which he refers to as an extremely entrepreneurial environment. Franchising used a comparable need to take ownership of a wide variety of jobs and be innovative in getting them done.
