So you’re trying to decide whether to start your own business or own a franchise. You’ve started to do your homework and have begun weighing the pros and cons of each option. Let’s set the record straight! Here are five franchising myths that you should know the truth about:
- Franchisors charge franchisees huge fees for their own profit. Wrong! Your payments to the franchisor, (as a franchisee), are the one-time fee, (for FirstLight Home Care that’s $33,500 with additional discounts for Veterans and certain minority ownership structures), and then royalties based on sales (typically monthly). Royalties are based on revenue generated per each franchise. They can be based on revenue collected or revenue invoiced. There are many variables that determine royalty fees and the frequency at which franchisees pay them. Depending on the franchise, you may also incur a National Advertising Fund expense (typically 1-2% of gross sales) and a Technology Platform Fee (if the franchisor developed and/or supports the platform for the franchise owners). For high integrity and efficient franchise systems, these operating expenses are far less than what you would incur on your own, and you have all the systems and procedures of the franchisor in place to help drastically reduce your risk!
- Operating a franchise is easy. No. It takes dedication, hard work, and a large amount of your time to start a franchise and keep it running prosperously. Granted, the franchisor is committed to helping you grow in every way possible they, however, don’t do all the work for you. Franchisors give you the training, industry knowledge and tools. You, as a franchisee are expected to put those elements to work. FirstLight Home Care does offer ongoing training for franchisees and their employees, as well as location visits and virtual meetings with franchisees should they ever have any questions or wish to enhance their knowledge of the industry or their market.
- Franchisors don’t allow franchisees any freedom when operating a franchise. This myth couldn’t be farther from the truth. Franchisors give franchisees plenty of freedom! Remember, the perks of owning your own franchise instead of a business is that your marketing, branding, market research and demographics, operating systems training and more are all taken care of by the franchisor. The franchisor has your best interest in mind as a franchisee, and wants you to be prosperous. There’s a reason they have specific tools and branding policies they want you to follow; they have a proven track record of growth with these components and they know the industry thoroughly.
- Owning a franchise costs more than starting your own business. Once again, wrong! As mentioned earlier, a franchise has marketing tools, training, operating systems, ongoing help, etc. The value of time as a person to have to find all of this and put everything together when starting your own business is priceless. Plus, then as a business owner you have the risk of not fully knowing whether or not the components you’ve chosen will work or not. By owning a franchise, every element or tool given to you is proven to aid in your growth as a franchisee. Ultimately, franchises do not cost more than starting your own business because of time value and risk factors.
- All franchise systems are the same. No way! Franchise systems differ depending on the industry and market. There are basic elements that all franchise systems must maintain, but most systems vary in their training, training methods, operating system usage, branding marketing guidelines, and how they make money. Review the FDD thoroughly to understand the philosophies of the Franchisor. In our opinion, it should be nothing short of “if our franchisees are not prosperous, then we are not!”
If you or someone you know is interested in owning a FirstLight Home Care franchise and would like more information, please feel free to call us: 1.866.985.5348, visit our Franchise Information website and download a Franchise Information Kit. You can also view our franchise map and see which markets are available to you!