Choosing a profitable franchise When thinking...
Becoming a franchisee is a huge commitment that impacts both a franchisee's personal and financial lives, so it's no wonder that many people invest a lot of time and research into it before making any commitments. After all, moving from working for someone else to working for yourself is both exciting and scary at the same time.
However, despite all of your prep, you may still be harboring some common false beliefs about franchising in Canada. Here are three common myths you can let go of today so you can enter the next phase of your working life armed with the correct information.
Myth One: Only Franchises in Competition-Less Industries Can Thrive
This is simply not true. Some of the fastest-growing franchises in Canada right now are part of the fast-food industry, according to Entrepreneur Magazine's article "Top Fastest-Growing Franchises for 2015", and that is a segment that is packed with competition.
In a franchise, it is the proven processes and systems that drive success, not how much competition there is. A strong understanding of a market and industry and what is missing from those areas helps businesses become successful even against stiff competition.
Myth Two: Franchises Are Too Expensive
This is yet another popular myth. There are franchises in Canada that require a larger investment, such as more than $1 million, but there are also franchises with investments set at less than $10,000. The cost varies widely by industry, brand and other factors, such as real estate and inventory. Generally speaking, bigger, more established franchises will cost more to get into than smaller ones because of all the benefits and security that come with investing in a big brand.
As a potential franchise owner, chances are you'll only need about half of your initial investment in liquid capital. Many franchisors partner with financing companies to help franchisees cover the total investment cost, and some even offer financing themselves. The Canada Small Business Financing Program also allows qualified borrowers to use the funds for some of the costs associated with buying a franchise (www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/h_la02855.html).
Myth Three: The Only Options Are Fast Food and Retail
While fast food and retail are pretty well known in the franchise industry, the truth is that there are a number of various franchise opportunities in Canada. These include animal care, real estate, staffing firms, tech services, cleaning, education, wellness and heath, and home improvement. According to the Canadian Franchise Association, there are actually around 1,300 different franchise brands operating in the country today.
Before you embark on or finish your franchise search, keep the following myths in mind so you don't talk yourself out of the right opportunity based on the wrong information.