The idea of owning a franchised business is appealing to many first-time business owners. The lure of buying into an existing, successful business model is hard to resist with many urban myths on the ease of owning and running a franchise. With many franchises failing within the first year of business is proof that the idea of a franchise that runs itself is nothing but a myth. This myth is the first and biggest pitfall of the Franchise business. So, first time investors, ask yourself the ultimate question before you commit to a franchised business, ‘Is Franchising for You?’

The first question before committing to a franchise is to know what franchise to pick.

The second question before settling down on a franchised business is, ‘How much time can you give the business?’.

The most important question to ask yourself before you invest in a franchise is, ‘can you afford the franchise?’ Though Franchisors will take in some of the costs to get the franchise up and running. Most franchises that die within the year die because of low capital. Franchisors can provide average running costs, but the franchise is still a business and needs to have enough funds to run till it is profitable. Most franchises start with a bang, but revenues coming in is solely dependent on local market conditions and how franchisees can tackle problems that arrive on a regular basis.

If you believe you can run your own business, toe the line and follow orders, put in the man hours, then buying into a franchise might bring you the financial rewards you seek.