The franchising industry spans a multitude of markets from food and retail to pet care and beyond, with approximately 831,000 franchise establishments in the U.S. alone. However, with a history that dates back to the mid-19th century, the franchising industry has had plenty of time for some misconceptions to form. By understanding the facts and knowing what to look out for, prospective franchisees can approach their decisions with confidence. We will help answer:

MYTH #1: FRANCHISEES HAVE NO CONTROL OVER THEIR FRANCHISE BUSINESS

Franchisees must follow an established business model when they invest in a franchise business that includes guidelines to help create consistency across locations and maintain the standards that the franchise has developed. While franchisees are required to follow this model and typically cannot introduce their own products or services, for example, it doesn’t mean they do not have any control over the business they’ve invested in.

For instance, many franchisees manage the hiring process, schedule their team, organize community involvement, and oversee other daily operations. They can set business goals, help foster a positive workplace culture, and take on the integral role of leading their franchise business to drive growth and success. While franchising may set the structure, franchisees still have the opportunity to tap into their entrepreneurial spirit and control how to grow their franchise business under the support and guidance of their franchisor.

MYTH #2: YOU CAN RUN A FRANCHISE COMPLETELY HANDS-OFF

Franchise businesses typically outline the type of ownership model they require from their franchisees in their franchising offer or dedicated site. It can include absentee, semi-absentee, and owner-operator models, each dictating the level of involvement the franchisee has in operating the franchise business.

READ MORE: Which Franchise Ownership Model Matches Your Style?

Although the term “absentee” might suggest being fully absent from the franchising role, there is typically an expected level of involvement required from the franchisee when they invest, especially in the first year. Of course, there’s a stark difference between the involvement of an absentee franchisee and an owner-operator. However, it is a myth that franchisees can be completely hands-off.

Even absentee franchisees need to be involved in the hiring process, including bringing on a manager to take on the full-time responsibilities that the franchisee would assume in other ownership models, monitoring the performance of their franchise business, and making sure brand standards are met. Absentee franchisees may not be involved in daily operations, but they will typically need to be available to establish the groundwork of their business and oversee results.

MYTH #3: YOU MUST HAVE BUSINESS EXPERIENCE TO BECOME A FRANCHISEE

One of the incredible aspects of franchising is the diverse occupational backgrounds franchisees have. For many franchise businesses, prior business or industry experience is not required of franchisees. This means that even if you lack knowledge about a specific industry, you can still pursue that opportunity. This is possible thanks to the initial training and ongoing support provided to franchisees, which is typically sufficient to build the skills and confidence needed to operate the franchise effectively.

READ MORE: Do You Need Industry Experience Before Investing in a Franchise?

Some franchisors may specify whether their franchisees need prior business experience. If that’s the case, that opportunity might not be suitable for you, depending on your background. Fortunately, there are plenty of franchises that do not have such requirements.

While business experience may not be mandatory in some franchise opportunities, you will often find that franchisors look for specific traits, skills, and leadership qualities from their franchisees, such as the ability to lead a team, optimal communication skills, a willingness to learn, and more. Having business or corporate experience may assist in these areas, but it may not be a prerequisite.

MYTH #4: OPENING A FRANCHISE LOCATION GUARANTEES A LOYAL CUSTOMER BASE

Investing in a franchise offers several advantages, such as built-in brand recognition and access to an established business model. These key elements often require significant time and resources to develop, which the franchisor has already completed, so franchisees can typically benefit from this groundwork. However, it is important to note that while brand recognition and a proven business model can help attract customers, they do not automatically guarantee customer loyalty.

Franchisees need to actively work to attract and retain customers so they can foster loyalty in their community over time. Key factors contributing to customer loyalty include maintaining customer satisfaction, building trust, and providing consistent product and service quality. These responsibilities lie with the franchisee and their team, rather than the franchisor. Even though potential customers may be familiar with the franchise and may have visited other locations in the past, franchisees cannot rely solely on the brand name for success.

MYTH #5: ALL FRANCHISE OPPORTUNITIES ARE STRUCTURED THE SAME

Franchises can vary from one another, even though they all fall under the broader umbrella of franchising. While searching for franchise opportunities, you may find common franchising terms, such as franchise fees, royalties, the duration of the agreement, and roles like franchisee and franchisor. However, there is no set standard for these elements.

For example, the amount of training offered to franchisees can differ significantly from one franchise to another, and some franchises may have different set fees (or not require some fees at all). This is why it’s essential to thoroughly review what each franchise opportunity offers, rather than assuming there is a standard.

While the specifics can differ, there are certain regulated elements in the U.S. required by franchisors, such as the Franchise Disclosure Document and Franchise Agreement, that you can expect from each franchise opportunity given at various points of the franchising process.

FRANCHISING WITH DOGTOPIA

Are you considering investing in the successful pet industry? Find out why Dogtopia can be the right business opportunity for you. Check out our detailed FAQ for more information and our investment page for details.

If you are ready to take the next step in your franchising journey, please fill out our online inquiry form.

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