Franchising has come a long way since the fifties! In fact, owning a franchise never looked so good; the industry looks to continue a trend of considerable annual growth in 2016, with particularly large surges being seen in the worlds of health and fitness, home care, mobile food, and child enrichment.
And yet, despite the growth of franchising across Canada, many myths have endured. Today, the FranNet team eradicates 5 fallacies about owning a franchise in Canada.
- “Franchising is all about food and retail.” Everyone involved in the franchising world is tired of hearing this myth! The franchise system has been implemented in every industry you can imagine. Do not feel constricted to food and retail when you sit down with your franchise consultants.
- “Franchise fees are too expensive! It’s cheaper to start a business on my own.” This is one of the most common and enduring myths related to owning a franchise. The individual considers their costs – leasing a building, creating signage, licensing and paperwork, products and supplies, marketing, and so forth – and notices that owning a franchise has one extra item: the franchise fee. Since franchising fees don’t exist for self-starters, the assumption is that it’s cheaper to build a business independently. Though the franchise fee is a noteworthy expense, it’s typically an investment that pays for itself not long after your doors are open. The streamlined training, marketing, material acquisition, and infrastructure setup that your franchise fee provides allow you to start making money long before your self-starting competitor, while also protecting your company from the hidden costs of the business world’s unforgiving learning curve.
It’s also important to know that there is a wide range franchise fees in Canada. Qualified franchise consultants can point you towards one that works for almost any budget.
- “I won’t have any freedom in a franchise system!” Some franchises require closer adherence to standard procedure than others, but complaints about franchise restrictiveness are almost always overstated. Your franchise consultant can guide you towards a franchise whose procedural strictness suits your personality and experience level. Franchise systems with more wiggle room will suit those with entrepreneurial instincts, while more comprehensive processes will offer a greater degree of support, security, and user-friendliness. There’s something out there for everyone!
- “The franchisor makes all of the money!” Franchisors do make money when new entrants join the franchise family, but the amount paid in royalties pales in comparison to the profitability and financial security offered by quality brand names. Besides, a significant percentage of the franchisor royalty fee funnels back into your business, funding the market research, training protocols, and support networks that franchisees rely on to stay ahead of the curve in their industry. Royalty rates and advertising fund fees vary from one franchisor to another, so there’s no need to sign onto terms that don’t fit your vision.
- “Most franchisees get ditched once their fees are collected.” There are disreputable individuals in every walk of life, franchisors included. However, franchising is popular largely because of the level of support and coaching it provides. Remember, most franchisors make the majority of their money off of royalty fees, which is only possible when their franchisees are thriving. Sharing success in this way gives the franchisor a very real and urgent incentive to offer great training, support, and ongoing education. So long as you choose a quality franchisor, you’ll have a huge competitive edge over your unsupported competition.
For more information about these topics and more, visit us at www.frannet.ca today!
About FranNet Canada
FranNet is a 29-year-old company with roots in the U.S. Its purpose being to nurture every entrepreneur’s dream of business ownership. We actively employ a specific profiling and consultation method. This method is geared to each investor with a specific business model and based on franchise trends typically found in Toronto, Ontario, Vancouver, British Columbia, or Calgary, Alberta. The most lucrative Canadian franchise opportunities are waiting for you. For more details visit – http://frannet.ca/buy-a-franchise/canada-franchise-buying-process/