Almost every American has done business with a franchise. On the fast-food front alone, nearly 80 percent of Americans eat at a franchise at least once per week. Many other routine parts of American life also involve franchises. The industry covers oil-change shops, fitness centers, tax preparation, and more. Though Americans are often franchise consumers, however, franchise ownership is less familiar–and lack of familiarity can lead to misconceptions. My co-consultant Lauri and I work primarily with would-be executive franchise owners, so we most often have to address misconceptions about that business model. If that’s where your interests lie, don’t let these executive franchising myths hold you back.
It’s only for corporate executives
Because it’s called “executive” franchising, candidates sometimes think they can’t qualify unless they have extensive experience as a corporate executive. In reality, any kind of organizational leadership experience can prepare you for executive franchise ownership. You need to know how to create teams, lead them to success, and manage strategy and big-picture financials. Plenty of non-profit leaders and former military officers have that skillset.
You have to invest millions
This is one of the most common executive franchising myths and probably scares away more people than other myths. While it’s true that some franchises (especially national-brand restaurants) require $1M-plus in startup costs, many more don’t. Regional brands and new franchise concepts can be especially cost-effective. And don’t forget: there are plenty of options for funding your franchise dream. For instance, the federal government offers a special loan program for new franchise owners.
You have to start as a multi-unit owner
Multi-unit franchising is the most common form of executive ownership, but it’s not the only option. Some franchisors will allow you to start out as a single-unit owner-operator and work your way to executive ownership. If your first location is successful enough, you can become an executive owner without buying more units. Or if you want the wealth-building opportunity and growth that come with multi-unit ownership, you can invest the profits from your first location into buying new ones. Then you can step back and manage the entire business from an executive position.
You have to work long hours
Thanks to the popular image of startup culture, many people associate entrepreneurship with insane work hours. They assume you have to live and breathe your business to be successful. When it comes to executive franchise ownership, however, that’s just not true. In fact, the whole point of executive franchising is to provide a full-time income from part-time work. With a good manager in place, you can even run an executive franchise as a side hustle to a full-time job. As a rule of thumb, we tell our executive franchise candidates to plan on spending 8-10 hours per week on their business once it’s running smoothly.
Any other executive franchising myths holding you back? Book some time today with me or Lauri to get the real scoop on what it’s like. Our services are free to you!
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