Franchising is an option that has been around the investment circle for a long time now. It is not unusual to come across people bus advertising in Singapore one or more franchise for sale. However despite the fact this type of investment being around for decades, it is still surrounded by a number of myths. For instance there is the popular myth that starting a franchise business is easier than starting other forms of businesses. This is not always the case. The thing about the franchise arrangement is that it provides the franchisee with practically all that he or she will need to get off the ground. Other than that it is up to the franchisee to put in the hours and efforts just to ensure that the franchise business becomes successful. The franchise business is just as engaging as the other forms of businesses only that the franchisee will get support from the franchisor.
Another myth that is responsible for attracting people into franchise opportunities is the assumption that all franchises are profitable. A number of people often make an investment decision based on the success of the franchisor. As a result they do not put so much effort to grow their business. For instance instead of trying to market and grow the business, they often hope to ride on the goodwill and reputation of the brand. As result they might end up having unprofitable ventures. It is worth noting that since a particular model worked in a particular area, it not necessary mean that the success will be replicated in just any environment. A person needs to carry out adequate research to ascertain the viability of the franchise in a particular area. Also the investor needs to put in effort to ensure the success of the business.
Just because a franchise is a model that has been tested, tried and proven to ascertain that it works, a number of people think that it is a low risk investment. A savvy investor will always know that risk is one factor that accompanies every investment opportunity. The only thing that varies from one investment to another is the level of the said risk. If a person offers a business for sale claiming that the business is risk free chances are that the person is not being honest. Probably what the person should have said is that the franchise is a low risk one. The amount of risk will depend on a number of factors such as the brand of the franchise, the amount of licensing fee, the amount of support and structures that the franchisor will give to the franchisee and so on. It is always a prudent investment decision to ascertain the risks involved.
An interesting misconception about franchises is that the business owner will get to set their own working hours. Even though to a large extent this is true that a person can get to set their own hours, it might not be practical. For instance if the franchise was a convenience store for sale, it would be impractical for the person to open the store at whatever time they desire. They will lose customers.