How to terminate a franchise agreement
Although a franchisor will give you the tools,...
When it comes to franchises, there are still a lot of misconceptions out there. In fact, many people still believe a franchise means a physical location with a lot of rules, but there are actually several mobile formats out there today and each franchisor has its own rules. Myths pervade every area of the franchise world, including around franchisees. As you look for your next opportunity, check out a few common myths about successful franchisees, some of which you may currently believe yourself!
Their location is simply a winner
A franchisee can make a location a success in an area people would not automatically think of as ideal. Location certainly does matter, but it's about everything connected to that location: the foot traffic, population density, demographics and other factors. Just having a location in a nice neighborhood doesn't cut it if the customer base isn't right for the business, and a lot of franchisees have made once-failing locations in less-than-ideal spots a success thanks to their work and efforts.
Your franchise should have area research to help guide you to the right location for your business. Even if you can't get your first choice due to budget considerations or another factor, know that you still have the chance to make your location a hit.
They have experience
Having previous business experience can give you a hard start when it comes to running a franchise. However, not all skills translate, and past success in a prior career doesn't guarantee you the same outcome in this one. In fact, sometimes an experienced franchisee can struggle to embrace a new franchise system because their inherent knowledge and biases make trusting the company system harder. These people have to unlearn their old ways of doing things, and that can be a real challenge.
So, while experience can be a benefit--or a drawback, in some cases--keep in mind that you don't need to have it to run a successful franchise. If you are willing to learn and follow the system, you've got a shot at success.
They love their business
To be fair, people have different opinions on this one. Some brands say their best performers are the ones who have the passion for the product or service being offered, while others have had great franchisees who were not necessarily enthralled by what they were selling. All agree, however, that you do need a passion for building a business in general. If you want to succeed as a franchisee, you need to love the idea of building your own business.