10 Myths About Franchising Politicians Should Know

As the 2016 election steadily approaches and debates move into full swing, it is important that those running for office have a well-rounded comprehension of the companies that are a large source of the nation’s income—franchises. And, with many of these large conglomerates bringing in so much income, reputations, rumors and assumptions come with the territory.

Below are ten myths that must be deterred and fully understood by the candidates of both parties, as we count down the remaining 365 days until one of them inevitably assumes office.

1. All franchises are food franchises.

Their logos can be recognized a mile away—a glimmering beacon of hope for that impending stomach grumble on the day the snooze button is hit one too many times. Fast food restaurants, and the increasingly popular “fast-casual” restaurants, are some of the nation’s most recognizable brands. As a result of this, they are automatically associated with the word “franchise.” It cannot be forgotten that franchises can be hotels, moving companies, fitness centers, animal care providers and much more.

2. Franchises are all big.

Although franchising a company does mean there are plans for expansion, this does not dictate the amount of locations they will expand to. Franchises come in all sizes, and they all start small before becoming a big household name. Some may not even want to reach this size, and are more focused on providing impeccable service to one area by sticking to their methods, gaining monetary compensation that way.

3. Franchises all have locations in every state.

Every franchise starts somewhere—quite literally. Expansion throughout one sector is vital and may take years before the entire county is even on the horizon, but this does not make them any less of a franchise. They are still fueled by franchisees, executives and customers who believe in their mission—it may just be on a smaller scale.

4. Franchisees are all robots.

Because every location is in its own town, or on its own corner, or in its own mall, each one is dynamically different. Every owner has their own mission, along with the overall mission of the national company. Each franchisee comes to the brand with their personal wealth of experience educationally and professionally. This stiffly impacts the way the location is run and the morals by which they shape their business. The franchisee may even choose to take a hyper local approach and partner with area charities and initiatives.

5. Franchises prohibit creativity.

It is up to the franchisee, and the franchisee only, how passionately they choose to run their business. They know best the community they are providing their product or service to, and are then free to alter their approach accordingly. Most franchises encourage creativity, and even look to their franchisees for new ideas and concepts—after all, they are working with the brand every day, too.

6. Companies are franchises from the start.

It takes years of investment, time and success to even consider franchising a brand. A concept must be proven successful from its starting location in order to expand, and even then a few locations’ doors must be opened before executives can consider taking it to a regional and then national scale.

7. Opening a franchise is unaffordable.

This could not be further from the truth. Opening a location does require an investment but many are smaller than one would expect and may even require less than $100,000 to hit the ground running.

8. Being a franchisee requires no work—corporate does everything for them.

The backbone and support of a proven system, executives and experienced fellow franchisees are the perks that come along with joining a brand. However, a lot of the support ends there, and that is where the franchisees start their work. In order for a specific location to be successful, a franchisee must have a well-rounded understanding of a brand, hire a motivated staff, and possess unbreakable leadership skills to combat any challenges that come along the way.

9. If a franchisee opens a franchise in a town with no other locations, they will automatically be successful.

This is untrue for two reasons: First, if it is a larger national brand, it is likely that there will still be another location in a nearby town. This means that the location will only be targeting customers within a small local radius. Residents neighboring towns will likely just go to the closest location to them. Secondly, if there are no locations anywhere nearby, and no one has ever thought to bring one, there may be a reason why—maybe this concept is not the best for the area, and is better suited elsewhere.

10. Franchising is boring because it is not the franchisee’s own concept.

A location is what a franchisee chooses to make it. If they choose to stick to everything provided by corporate, they could potentially fall into a boring lull. However, if they choose to make the location their own, hire a dynamic motivated staff and develop clear goals, the opportunities are endless.