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Franchising has a few stigmas. It is all about fast food, it is not sexy and it is often seen as a shortcut to entrepreneurship—a ready-made business with brand recognition and a roadmap for success. While that’s partly true, there are plenty of misconceptions that can mislead potential franchisees and even eliminate people from considering this route to business ownership.
If you’re thinking about investing in a franchise, it’s crucial to separate fact from fiction. Let’s do some myth busting!
Myth #1: Franchising is EASY Money Guaranteed!
Truth: Franchising can be profitable, but it’s not a guaranteed cash machine. You still have to work hard, manage people, market your business, and solve daily problems. Think of it as owning a business with training wheels—you’re still riding the bike and there are bumps in the road. Heck, you can still fall off.
Success takes time, effort, and financial patience. Many franchisees work longer hours than they did in corporate roles, especially in the early years. You get out what you put in! In this situation, you are not sitting at your corporate desk waiting for your bi-weekly paycheck to hit the bank. If you don’t show up, neither does payroll.
Myth #2: You Don’t Need Business Experience
Truth: While many franchises are designed to train newcomers, having business, leadership, or customer service experience can be a huge advantage. You’ll need to make financial decisions, manage teams, and lead operations. Franchises like to train new owners on the concept and business-type (where no experience is needed) but you need to have a basic understanding of what levers to pull even when coaching is provided.
Franchisors give you the system (aka “playbook”), but they don’t run the business for you.
Myth #3: You’re Just Buying a Job
Truth: It can feel that way—especially if you’re an owner-operator working full-time in the business. But many franchisees grow to own multiple units or hire managers to create more passive income over time. Some love working “in” the business because they see the fruits of their labor. Others hustle to work “on” the business to grow into a more general manager/executive type role. This goes back to our goal of finding YOUR fit – your involvement will be different based on the franchise of interest.
You’re building an asset, not just trading hours for dollars—if you treat it like a real business.
Myth #4: The Franchisor Will Handle All the Marketing
Truth: While franchisors provide national marketing campaigns and brand tools, local marketing is often up to you. That means community outreach, networking, promotions, and managing your own local social media. The corporate franchise office is not going to come and sponsor your son’s little league baseball team. That is the local marketing engagement required of a local owner. Funny, I never thought of a franchise as being “locally-owned” but IT IS!
Local visibility = local responsibility. Successful franchisees are proactive marketers.
Myth #5: All Franchises Are Expensive
Truth: Not all franchises require a million dollars to start. There are lower-cost options especially in the non-brick and mortar space – services. Hundreds of options exist beyond your typical brick and mortar business and way beyond fast food. Think home services, senior care, education, consulting…the list goes on!
Franchising isn’t just for the wealthy—it’s for the resourceful. Most franchisees finance their franchise through SBA and ROBS offerings.
Myth #6: You Have No Freedom as a Franchisee
Truth: Franchises come with rules—but you still have autonomy over how you run your day, manage your team, and grow your business. Some industries are stricter than others (e.g., fast food), but many franchises encourage owner creativity—within guidelines. Believe me, no one was in my office telling me how to run my franchise.
You give up some flexibility for brand consistency—but gain support and proven systems.
Myth #7: If a Franchise Brand Is Popular, It Must Be a Good Investment
Truth: Just because a brand is well-known doesn’t mean it’s the right fit for you or your market. High brand awareness often comes with high fees, saturated markets, and tough competition.
Due diligence matters more than popularity. Look at unit performance, support quality, and franchisee satisfaction before signing anything. Also known, as Find Your Fit.
Myth #8: Franchising Is Only for Food Businesses
Truth: While food franchises are common, franchising spans dozens of industries, including:
- Fitness
- Home repair
- Child education
- Health & wellness
- Pet care
- Automotive
- B2B services
Many of these services you may have used and NEVER knew it was a franchise. When you start looking, you will be surprised how many are at your fingertips.
There’s a franchise for nearly everything!
Myth #9: You’ll Be Profitable in a Few Months
Truth: Some franchisees take a year or more to break even. It depends on the industry, your location, your skill, and how aggressively you market and operate. If you are operating on a part-time, semi-absent basis, expect it to take longer.
Plan for a slow ramp-up and have enough working capital to get through it. It is HARD – no one said it was gonna be easy.
Myth #10: Franchising Isn’t Real Entrepreneurship
Truth: You may not be inventing a product from scratch, but you are building, leading, and taking risks like any entrepreneur. You make hiring decisions, manage finances, grow revenue, and adapt to your local market. At the end of the day, that business belongs to YOU and the success is on YOU too. As the owner, you pull all the levers.
Franchisees are entrepreneurs—just with a head start.
Final FIT Thoughts
Franchising is a powerful business model—but only if you walk in with clear eyes. Don’t let the myths cloud your judgment or lead you into a situation you’re not prepared for.
Take your time, do your homework, and talk to real franchisees. The more you learn, the better prepared you’ll be to turn your investment into a thriving, long-term business.AND, partner with an experienced franchise coach, like The Franchise Fit Company to help you navigate, explore and ask the right questions. Your third party and extra set of eyes-our goal is to find your right fit, not SELL you a franchise. Contact Us
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When you’re researching franchise opportunities, one of the most anticipated sections of the Franchise Disclosure Document (FDD) is Item 19: Financial Performance Representations (FPRs). This is where franchisors may (but are not required to) share historical revenue, expense, or profit data from their franchise system.
On the surface, it feels like the holy grail of decision-making—finally, some numbers. But here’s the reality: relying solely on Item 19 to decide whether to buy a franchise is a mistake. This document is the epitome of comparing Apples and Oranges!
Sit down for this one…here is why:
1. Not All Franchisors Provide the Same Information (Not Kidding!)
Franchisors are not required to include Item 19 but they do because it helps sell licenses. Some provide detailed financials, while others give partial or limited data (e.g., gross revenue averages without expenses). You might be looking at a “best-case scenario” instead of a complete financial picture. “It’s like a box of chocolates…”
2. Averages Tell You What? Not much.
Many Item 19 disclosures are based on averages, which can be misleading. An “average” can be skewed by a handful of top-performing franchisees, while the majority may be operating below that number. Without context, the average can set unrealistic expectations.
3. Expense Data – Absent.
Even when revenue is disclosed, net income is rarely shown. Item 19 often leaves out critical costs—rent, labor, marketing, or debt service—which directly impact what you take home. High revenues don’t equal high profits. Oh but wait, what one owner expenses is wildly different from another owner. We are over here expensing home improvements and another person is expensing their new Audi. See my blog featuring Net Income – that is another story for another day.
4. The numbers are HISTORY!
The numbers in the Item 19 are historical data points. They are not futuristic. They are not current year-to-date. They do not represent the current market landscape. The numbers are completely a reflection of the previous year’s performance by owners that were operating a full calendar year prior to updating the FDD (yearly occurrence).
5. Performance Depends on You – And that is a FACT!
Yes, I mean to tell you that just because this is a franchise, it does not mean you automatically make money! Sorry. Your results won’t just depend on the franchise brand, it will depend on the location, market size, your management style, and your ability to execute the model too. Item 19 can’t tell you how well you will perform—it only shows what others have done under different circumstances.
6. There is Gold in Validation
Numbers are important, but the real insights come from conversations with existing franchise owners. They’ll tell you what margins look like, what unexpected expenses come up, and how long it took them to cover expenses monthly, operate in the “black” or hit break-even. Validation calls reveal the day-to-day realities that Item 19 cannot capture. In essence, we can break it down to simple math: how much does it cost to run the business monthly (without bells and whistles) and how much does the average ticket bring in…pull your napkin out and see how many customers you need to breakeven monthly. Can you do it PLUS some?
As for Validation, we can talk later about how to manage validation calls and pull out the data to use in how YOU will operate. Remember, you are going to run the business and it may not be exactly like them. Can you get excited about the typical day-in-the-life?
FIT TIP: Item 19 is a useful tool, but it’s only one piece of the puzzle. Don’t let it be the deciding factor. Pair it with thorough validation, market research, and an honest evaluation of your goals and resources – Find Your Fit and that will show you the money!
Ready to Find Your Fit? Contact Us
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One of the most common questions or requirements I hear from people exploring business ownership is: “Can this franchise replace my salary?”
It’s an understandable question — after all, most of us are conditioned to measure career success in terms of our paycheck, job offer and yearly raises. But here’s the truth: replacing your salary is only one piece of the puzzle, and focusing solely on it can cause you to miss the bigger picture of what business ownership offers.
Business ownership – you are in control. You define your paycheck! Let’s jump into helping you have a different perspective:
1. Salary Is Not Take-Home Pay
Many people think in terms of their gross salary, not their actual net income. “I make $180K a year!” No you don’t! Taxes, healthcare costs, retirement contributions, and other deductions mean your “salary” isn’t the same as the money hitting your bank account. When you consider franchising, the better question is: “How much do I actually need to run my household and live the life I want?” That number is often different — and sometimes lower — than the offer letter or raise in salary you’ve been chasing.
2. Salary Is About Today — Ownership Is About Tomorrow
A corporate salary is predictable, but it ends the moment you leave. A franchise, on the other hand, is an asset. You’re not just building income for yourself today; you’re building equity in a business you can grow, scale, pass on or eventually sell. That long-term wealth creation goes far beyond “salary replacement.” Remember, you are in control of the business. You determine your raise and income based on what you put in and want out. This is a big change in mindset!
3. Flexibility and Control Matter Too
Think about why you’re exploring franchising in the first place. Chances are it’s not just about money. If it is – this isn’t a “get rich scheme”! It’s about controlling your schedule, creating more time for your family, or aligning your work with your personal values. These intangibles don’t show up in a salary comparison, but they’re often the reason people make the leap. What are these important factors worth to you? There is value and trade-offs in what you are searching for – only YOU can determine how this plays into your search decisions.
4. Risk and Reward Look Different
Your paycheck feels safe, but it can disappear with a layoff, restructuring, or merger. Franchising involves risk too — but it also gives you the ability to influence your results. Instead of hoping someone in a boardroom makes a decision that protects your job, you’re in charge of driving your own success. When you wake up each day, you make the decision on how hard you work, what you focus on and what happens in the business. I have not found one business owner to-date that has fired or laid themselves off.
5. Wealth Isn’t Just Income — It’s a lifestyle of YOUR choice
When you build a franchise, you’re investing in something that has resale value or legacy for your kids. Many owners exit their businesses with a multiple of annual profits — something no salary will ever give you. Added Plus, the lifestyle benefits of business ownership (flexibility, freedom, fulfillment) add a dimension of wealth beyond dollars and cents. The value I place on time is much greater than when I was trying to climb the ladder of success. At the end of the day, who really cared about title and role – Oh, it was me! My family on the other hand cared if I was present or not.
6. It’s About Return on Life as Much as Return on Investment
If your only measure of success is whether the franchise replaces your old paycheck, you’re applying an employee mindset to an ownership opportunity. The real question is:
- Does this business align with the life you want to live?
- Does it give you the opportunity to create wealth, not just income?
- Does it help you define success on your own terms?
Fit Tip: Replacing your salary might be the starting point in your franchise search, but it shouldn’t be the finish line. Salary is a single number without meaning. Ownership is a whole picture — financial, personal, and lifestyle — that can transform the way you work and live.
I only wish I could explain the feeling of being on the other side. It is a journey each person must take individually and for their own reasons!
If you’re exploring franchise ownership, I’d love to share what I’ve learned—and help you find the path that’s truly the right fit for you.
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I took over an existing franchise for almost zero investment—literally just opened a bank account and added some operational funds. Yes, these opportunities exist. Sometimes, an owner is ready to move on, and you can get a steal of a deal.
But let’s be clear: nothing is ever truly free.
What I inherited:
- A business that had once grossed over $1M annually
- At takeover, it was bringing in ~$40K/month and declining
- 8–10 staff members, solid customer accounts, 2 office locations, and all the equipment and supplies
Sounds great, right?
Well, here’s what I actually found:
- Jobs were severely underpriced—no profit in sight, lots of “friends and family” discounts
- A team with poor attitudes and little accountability—zero leadership, zero quality control
- No GM in place (and I had planned on running this semi-absentee)
- Marketing? Nonexistent for the last 6–8 months
- Leads weren’t being worked, and new business came solely from word-of-mouth
So yes, I got a deal—but it came with surprises.
What I did next:
- Cut the business in half within 60 days—raised prices, lost some customers, but that was OK
- Addressed the team—some left, others were let go. Also OK
- Promoted a manager to oversee the day-to-day
- Restarted marketing efforts
It still took over a year (and a lot of trial, error, and tough calls) to turn a profit.
Lesson: Buying in doesn’t guarantee a head start. You must dig in, evaluate thoroughly, and be ready to do the work.
Starting a Franchise from Scratch
In contrast, my husband and I launched a brand-new franchise location together—and the difference was night and day.
With strong franchise training, a detailed launch plan, and ongoing support, we were able to:
- Make every decision with intention
- Shape the customer experience from day one
- Stay laser-focused on margin and quality
Within six months, we were closing projects, protecting our profits, and putting money back in the bank.
Yes—it was still work. But when you’re aligned with a franchisor that has proven systems, real support, and a solid structure, starting from scratch doesn’t have to be scary.
Moral of the story:
Whether you buy existing or build new, the right FIT matters.
Know your strengths, understand the work required, and partner with a brand that aligns with your goals.
If you’re exploring franchise ownership, I’d love to share what I’ve learned—and help you find the path that’s truly the right fit for you.
