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5 Common Myths About Opening a Franchise Business

5 Common Myths About Opening a Franchise Business

Five common myths about opening a franchise business.

Starting your own business is a challenging and exciting endeavor, whether you begin from scratch or decide to open a franchise business. Each type of venture holds its own risks and benefits, but there are many common myths about starting a franchise that hold some potential franchisees back. You may be surprised to learn how a perceived disadvantage can actually benefit your business in the long run. Read on for the truth behind some of those misconceptions.

Myth #1: The location of your franchise is everything.

While it’s true that opening a business in a busy and thriving location can make it easier to get customers in the door, it’s always up to you to entice them to come back. Sometimes, a good location can make up for less than stellar business skills, but that’s not what builds long-term loyalty. High-quality products, excellent customer service and clever marketing are the pillars of successful business, regardless of where it is located. You may have to draw upon a little creativity, but there are many ways to entice your potential customers through the door no matter where you set up shop. 

One possible advantage of a less-than-prime location is less expensive rent. Lower overhead costs could help your bottom line and allow you to invest in other ways to promote your business. There is no reason to believe your business is destined to fail based on location alone.

Myth #2: You need to be an expert in the franchise business you choose.

You do need to have a general understanding of the company and the products they offer before you open a franchise, but you don’t need to be an expert to begin. You will gain experience and knowledge through available training programs and while on the job. At the end of the day, you must be willing to always continue learning how to run and grow your business—period.

Take advantage of being part of a network that encourages you to draw from their existing expertise. When you start a franchise, you are given guidance for conducting day-to-day operations and have many resources of information. A good business plan and a yearning to succeed is more important than your formal education.

Myth #3: It’s more expensive to buy a franchise than start your own business.

While there is an initial franchise fee, consider the benefits you’re gaining from your investment. When joining a franchise network you receive existing brand equity that could take months or even years to build when you open your own business. That brand equity goes a long way towards getting customers into your business that much sooner. In addition, you’ll also receive guidance and marketing support. Opening a franchise is a great way to go into business for yourself, but not by yourself.

Myth #4:  You have no control.

Franchising does require following a set of rules and regulations to ensure uniformity across all locations. But it’s still your business. You hire the staff, you set up the establishment, you create an atmosphere of success. While you must adhere to the franchisor’s guidelines, there is always room for creativity like planning your own customer loyalty events or creating an earning system to reward your hardest-working employees. Most franchisors give their franchisees some leeway to express their individuality and make the business their own.

Myth #5: Success is guaranteed.

Just because you are given a franchisor’s proven guidelines and tools to succeed, that doesn’t necessarily mean that you will. This is your business and success will depend on your efforts. Opening a franchise is a smart way to align with an established entity and build a business of your own, but it isn’t a short cut to avoid hard work. Like with any venture, there are outside forces beyond your control that may hurt your business. Although you’ll have support from your franchisor, starting a franchise isn’t risk-free.

Arm Yourself with Information

Franchising can be a great way to dive into business ownership, but it’s important to know the facts. There are a myriad of franchise opportunities available across an array of industries at varying price points. It’s critical to do your homework before signing on the dotted line. Being aware of these myths can help dispel some misconceptions about franchising and aid in finding the right success path for you.

2023 Entrepreneur's Franchise 500 Top Rated for Veterans badge

We Proudly Support Our Veterans

Participating partners with the VetFran program, The UPS Store offers qualifying veterans $15,000 off their franchise fee to start their new business. To learn more, contact The UPS Store Franchise Development Team.

Entrepreneur's Franchise 500 Ranked #4 in 2023 badge

Ranked for over 30 Consecutive Years

The UPS Store has been ranked #1 in the postal and business services category for over 30 years and remains in the top 5 overall for the seventh consecutive year according to the Franchise 500 list.

Kristin Howard

Franchisee, Michigan

The reason my husband and I decided to go into franchising and specifically with The UPS Store, is the different opportunities we're given with the business. The UPS Store has name recognition as well as opportunities to expand.

Debbie Adams

Franchisee, Kentucky

What I enjoy most about being a The UPS Store owner is working with my customers. We are the solution specialists for our customers.

Jim George

Franchisee, Illinios

My favorite part about The UPS Store network is the camaraderie with other franchisees. Everybody loves to help everybody else. You’re really part of a family.

Greg Murray

Franchisee, Florida

The interesting thing about The UPS Store is that when a customer walks through the door there's an extremely high probability that they're coming there to do something that is important to them. So at the end of the day, what we do for customers is very important and they are trusting that we are going to do it well.

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Mariana Huberman

Franchisee, Washington, D.C.

One of the things that I love about The UPS Store franchise system is that you're not ever in this by yourself. The franchisees of The UPS Store network are great.

Heidi Morris

Franchisee, Colorado

The thing I enjoy most about being a The UPS Store franchisee is I get to get up, go to work and know that I'm helping other business owners succeed in what they're doing.

Bob Brown

Franchisee, Tennessee

Owning a The UPS Store franchise has changed my life because it's finally given me the opportunity to engage my customers and my staff and be able to take real pride in what I do. As a franchisee, we get faced with solving peoples' problems every day and we do everything we possibly can to try to help.

Marie Jensen

Franchisee, Oregon

My favorite thing about The UPS Store is the variety. I love the variety of customers, I love the variety of services; getting to know the customers, meeting their needs, finding out how we can help them accomplish what they need to accomplish and seeing how happy they are. That makes me ecstatic.

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Tad Mollnhauer

Franchisee, Florida

With the products and services that The UPS Store provides we can make a difference in people's lives and that is the best reason for being a The UPS Store owner.

Joy Batchelor

Franchisee, Idaho

What makes being a The UPS Store franchisee worthwhile at the end of the day is the customers. The customers treat us like we're family.

Paul Erchinger

Franchisee, Texas

One nice benefit of owning a The UPS Store franchise for me has been that it gives me the opportunity to be more involved in the community. As I make relationships with others it seems like no matter what the environment is, in one way or another business comes out of that and that's not my objective—it's been a secondary benefit to being involved in the community.

Chris Reminder

Franchisee, Ohio

There are several things that I really enjoy about being a The UPS Store franchisee. First and foremost it allows me to get to know the people in the local community and that is a lot of fun. We get to see people on a regular basis. We get to know their life stories. That's a lot of fun.

Bruce Jones

Franchisee, Kentucky

Since we have joined The UPS Store, our life has changed by just having more time to spend together as a family. We've been very fortunate with the stores that we have and we have a great staff that looks out for our best interest and we look out for theirs.

Lonnie Williams

Franchisee, Oklahoma

What makes The UPS Store so successful is it gives each individual an opportunity to grow with the network and just meet the challenges that are brought to them on a daily basis. Every day gives us a new opportunity to help another person, to help another small business, to answer a question and to solve a problem.

Jeff Graham

Franchisee, Alabama

I love my customers. I love my employees. I love every person, every face that comes into my store. I enjoy every day going into work and I can't see doing anything else for the rest of my life.

Stacie Stigar

Franchisee, Alaska

I think that this franchise is so successful because of all of the resources that are available to us as center owners—we have marketing materials, we have so many different opportunities for help from the home office, and it just really makes for a great franchise.

Don Pollard

Franchisee, New Jersey

I think the thing that makes this franchise successful is a number of things. First of all we have an outstanding system, we have a great product, a great brand, and we're able to attract dynamic people to run these centers and run the business. So I think when you put all that together it really provides for a winning combination.

Mary Ellen Nichols

Franchisee, Tennessee

The thing I love about the franchise is that you have the UPS name backing you but yet you also have the autonomy to make your own decisions to promote.

Laura Griffin

Franchisee, Florida

In the eight short months I've owned my The UPS Store it has really changed my life. I've gone from being an employee of someone else to being an employer of my associates. It's a big responsibility but it's exciting every day.

Sandy Scandrett

Franchisee, Wisconsin

Being a The UPS Store franchisee has improved every aspect of my life. It's very rewarding financially, professionally, and emotionally. I have a large number of regular customers who are really, really appreciative of everything we do.

Kristie Robison

Franchisee, Alabama

I would say owning a The UPS Store location has changed my life to where I have more time and flexibility. In owning your own business you get your store up and running and you get employees that you can trust that are going to help keep your store running. This allows me to attend my two boys' ball games and also travel and do things with them so it has really changed my life for the better.