What are some of the most common misunderstandings that occur in franchising?

The most common misconception is that a franchise system is a guaranteed, risk-free investment. No business is without risk and it’s imperative that a prospective franchisee investigates the potential investment thoroughly. This is a top tip for franchisees. Once invested in a franchise, the business system will reap rewards proportional to the effort put in. […]


The most common misconception is that a franchise system is a guaranteed, risk-free investment. No business is without risk and it’s imperative that a prospective franchisee investigates the potential investment thoroughly. This is a top tip for franchisees.

Once invested in a franchise, the business system will reap rewards proportional to the effort put in. The franchisor can train, guide, give advice and support, but cannot do the job for the franchisee.

Derek Smith
About the Author
Derek Smith is the owner of Hot Dog Cafe and the elected FASA chairman for 2013.

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