3 Common Misconceptions about Franchising
The franchise model is a popular way for businesses to grow and add locations in Canada. Despite the fact that franchises can be found in most communities, there are some misconceptions about franchising that seem to come up again and again. So, let’s clear them up!
Franchising is only ‘fast food.’
Quick service and other food service franchises are certainly a very visible part of the business landscape. About one-third of the Canadian Franchise Association’s membership belongs to this sector. However, this also means that the other two-thirds of CFA member franchise systems operate in other industries! Because any business that can be exactly replicated in another location can be franchised, franchises are found in almost every business industry and sector.
Franchises are guaranteed to make money.
While franchises offer many advantages, such as a proven concept and system support, the success of a franchised business depends upon the franchisee. In order to find success, franchisees need to be hard-working, hands-on, and thoroughly involved in all aspects of their business. Though the risks involved in operating your own business can never be eliminated, they can be reduced by investigating the franchise opportunity extensively before investing to ensure that you are comfortable with and confident about the responsibilities you will be taking on.
To join a franchise system, just cut a cheque.
Having the financial capabilities to cover the financial side of a franchise investment is only one piece of the puzzle. You should also be conducting proper due diligence, investigating and evaluating the franchise system from A to Z. You should look as things like how well the franchise fits your personality, skills, experience and lifestyle. Joining a franchise is an investment of more than just money – you will also need to invest your time, talent, and hard work. Keep in mind that as you assess the franchise system, the franchise system should also be evaluating you, considering how well you fit with the system and its company culture.
The opinions or viewpoints expressed herein do not necessarily reflect those of the Canadian Franchise Association (CFA). Where materials and content were prepared by persons and/or entities other than the CFA, the said other persons and/or entities are solely responsible for their content. The information provided herein is intended only as general information that may or may not reflect the most current developments. The mention of particular companies or individuals does not represent an endorsement by the CFA. Information on legal matters should not be construed as legal advice. Although professionals may prepare these materials or be quoted in them, this information should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought.