Entrepreneur
Whenever I speak with a new candidate, I frequently find myself answering a few repeat questions. Primarily, these questions are centered around a myth or misconception that has given them pause in considering franchise ownership.
Asking an abundance of questions is a vital part of the due diligence process, so I welcome these questions. But sometimes, people allow these myths to stop their entrepreneurial dreams in their tracks. Below is a list of five common myths I hear about franchising and what I’ve learned after eight years in the business:
Related: Considering franchise ownership? Get started now to find your personalized list of franchises that match your lifestyle, interests and budget.
1. “I’m buying myself a job”
“Self-employment” can have a negative connotation about it, whether it’s outside sources casting doubt on the viability of a particular opportunity or your own internal resistance. But in my experience, there is a lifestyle improvement that comes from business ownership.
And let’s be clear, self-employment is not the path of least resistance — you’ll have to put in a great deal of effort to make your dreams a reality. However, when the responsibility of success lies squarely on your shoulders, there is a sense of pride and purpose that comes with the territory.
Related: 64 Million U.S. Households Have a Pet. Here’s How This Top-Ranked Franchise Is Making Busy Owners’ Lives Easier.
2. “Isn’t franchising all fast food?”
Simply put, NO. There are indeed plenty of excellent restaurant franchises, however these in no way represent an exhaustive list of franchising opportunities. Especially in recent years, franchises have expanded into many different industries. In fact, whenever there is a consumer need that is not being met, franchises frequently become the solution.
Salon services? There’s a franchise for that. Boutique fitness? Child and senior care? Mental health services? Home care services? There are franchises for that. If you can imagine a customer need, then there is likely a franchise out there to answer the call.
Related: Explore the full 2025 Franchise 500 list, complete with category rankings.
3. “Franchising isn’t scalable”
This is a myth that initially kept me from considering franchising. I didn’t have any reservations about the brands or concepts, but I had always considered a franchise owner to be someone who ran their small shop or business, but didn’t scale beyond. However, when a friend grew his multi-unit operation and sold out in a multimillion-dollar deal, I had to walk back my assumptions. Between territory expansion and multi-unit franchise growth opportunities, franchising can be highly scalable.
Related: Greg Flynn Owns 1,245 Restaurants and Makes $2 Billion A Year. Here’s How He Did It.
4. “Franchising is low-brow”
In the world of business ownership, franchising is sometimes considered to be more “low-brow” than other businesses. Why? Maybe it’s the fact that the idea is not yours. Maybe the connotation of “buying a job” comes with a perceived lack of effort. Maybe it’s that many franchise brands don’t represent a certain desired social status.
Sure the concept may not be your brainchild, but that also means it has a proof of concept. You’ll have to put in as much time and effort as you would in a corporate role, if not more. And look, I won’t sit here and tell you that home repair services like plumbing and gutter cleaning are sexy. But what I will tell you is that franchises often perform some of the most reliable and ongoing essential services and the vital nature of the services they provide keeps business going in economically volatile times making these businesses recession-resistant.
Related: After Decades of Hard Work, This Couple Is Living the Entrepreneurial Dream. Here’s How They Achieved Generational Wealth
5. “Franchises are a source of passive income”
Whenever I speak with a new candidate who is interested in franchise ownership, one of the most important conversations we have is regarding the future role they will have within their franchise. There are models for various owner roles, including self-employment, owner-operator, executive and semi-absentee. However, more semi-absentee models typically require you to have more startup capital to preclude you from day-to-day operations.
For example, I owned a fitness franchise that typically required 2-5 hours per week of my time, but the first 90 days of getting it launched required me to work nearly full-time in addition to my corporate job. It is important to validate the owner’s role with current franchise owners in any system. Therefore, while it can be highly profitable and successful, your investment in a franchise is unlikely to be passive — at least not at first. Eventually, franchise owners may move into a more semi-passive role once they have scaled enough to hire managers to run the daily operations.
I’ve heard each of these myths many, many times since becoming a franchise consultant. The candidates who have gone on to be successful franchise owners were able to reposition their relationship with franchising and see the vast opportunities available rather than lean into partially informed myths about the industry. While franchising isn’t for everyone, you must make business decisions with clear information rather than myths or misconceptions.
Related: Here’s how we determined the annual Franchise 500 ranking — and what we learned from the data.
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