The Franchise Owner's most trusted news source

Log In / Register | Jul 22, 2018

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.

Franchisee Advocate to Testify Before the California Senate Judiciary Committee

The American Association of Franchisees and Dealers (AAFD) has signed on as a co-sponsor of California Senate Bill SB610, fair franchising legislation pending in the California legislature.

AAFD Supports California's Franchise Bills

The American Association of Franchisees & Dealers (AAFD) is asking California franchise owners to support two pieces of franchising fairness legislation recently introduced in the California State Senate and State Assembly.

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.

6 Ways to Approach a Franchise Investment So You Don't Buy a Lemon

Sure, a franchise company might have a great sales pitch filled with big promises, but even though a franchise might sound like a Lamborghini what you could really end up with is a lemon. Do your due diligence and make sure the franchise you’re looking to invest your money, blood, sweat, and tears in is the real deal.

The AAFD's Franchise Search To-Do List

Researching and assessing possible franchises to buy is an exciting process. After all, you’re taking concrete steps to changing your life in a big way.