EASYRunning a franchise company is not all that difficult, but it is not easy. When you franchise your business, you need to be prepared for a big change. If you tend to be a resilient kind of person, you will find it exhilarating and fun; however, if you are set in your ways, franchising can be challenging and scary. But, the truth is that resilience is a trait of most entrepreneurs, so you are probably going to enjoy the journey.

There are many people who hold erroneous beliefs around this subject. These misconceptions include the following:

Fallacy #1

If I franchise my business, I won’t need to spend so much time, the franchisees will be the ones operating the business; therefore, I can have more free time to spend with my family and play golf.

Fallacy #2

If I franchise, I won’t need any staff.

Fallacy #3

Franchising a business is inexpensive. I can grow the business without spending any money.

There is some truth in the previous statements, but unfortunately they are not entirely true. People who hold these beliefs need more information. It is all a matter of degree. When business owners decide to expand via franchising they need to make three commitments:

  • Time
  • People, and
  • Resources

Time Commitment

The commitment of time can be very difficult for some people. If you are overextended, and most small business owners already are, making a time commitment to a new project for many is not feasible. People who believe that franchising will free their time based this thought on the premise that if you franchise your business you will not have to spend the time required operating that location, the franchisee will have to do that. When you franchise you won’t spend as much time as if you had opened the new location as a company store. However, franchising adds a new dimension to your business. You now must find time to grow the franchise by recruiting franchisees. You will also need to train them and support them. In the beginning, these additional responsibilities will probably take a lot of time as you are learning a new business. Eventually as you hire staff to take on these responsibilities and as you become more experienced, there will be less time required.


When you franchise, you won’t have to hire people to work at the new locations. The franchisee will be responsible for hiring, training and managing the staff required to operate the business. Yet, as you add more franchisees, you still will need to hire people to take on recruiting, training and supporting franchisees. However, these support staff can handle many franchisees, so the number of people you have to hire when you franchise is significantly less than the number you need to run the expansion from company-owned locations.


When you franchise, you essentially use other people’s money to expand your business. However, you still need to make a significant initial investment to develop your business into a franchise. You can recapture your investment quickly as you start selling franchises, but you need to ensure you have enough capital set aside to grow the franchise. Once you get your documents and registrations, you will need to spend money to market your franchise. Further, as you get franchisees, you will need to continue to spend money on creating more efficient and better tools to serve franchisees. The good news is that you will also be getting revenue from franchisees that will allow you to offset these expenses.

Franchising a business and running it afterwards is not that difficult, but don’t be fooled, initially it is not very easy either. Are you ready for the challenge?