Myth 1: You’re signing your life away
Have you ever heard the term investing in franchising is investing in your future? Well, we absolutely agree, and we work closely with our franchisees to ensure it’s just that – a successful business operation to help their investment grow. What the phrase doesn’t mean, however, is that you’re tied to one franchise for life or that you must stay in franchising forever.
Franchising is a contractual agreement which usually lasts around 5 years. That contract means you will represent the brand, business ethnics and certain payment terms (if applicable) for using the franchisor’s brand and business. After 5 years, you’re welcome to renew your license should both parties be satisfied with their partnership or you can choose to leave the agreement and no longer trade as the franchise brand.
Myth 2: It’s just too expensive
There’s a reason franchising comes with a cost, but it doesn’t mean it’s expensive. There are franchise models in the UK for less than £10,000 or even lower – less than £5,000. This initial franchise fee is put in place by the franchisor to allow an individual to use their brand, their reputation and their product/service offering to generate business. It helps to prevent anyone using their business model, especially those not looking to take it seriously, who could damage a business’s reputation that other individuals also use.
Low-cost franchises may be tempting, but it’s worth noting that their fee often reflects the return you will receive. This could be the support offered throughout the franchise or a higher royalty fee on business generated each month.
Myth 3: Franchisors will let anyone invest
We don’t understand why any franchisor would let anyone in, we certainly don’t. Before a franchise contract is signed, we will conduct thorough checks on the individual and ensure there are multiple meetings from initial interest, to ensure that both parties are aware of the partnership they’re looking to invest in. We invest in our franchisees as much as they invest in us, with our time, money, innovation and experience.
That being said, you don’t need property experience to join Century 21 UK. We offer a full pre-launch training, bespoke to each individual, to ensure that you’re comfortable with the general running’s of an estate agency, and then we’re on hand for any queries or concerns from the get-go.
Myth 4: You’re guaranteed to succeed
According to the QFA, 97% of franchisees are seeing a profit or a positive return on their investment.
We wish it was that easy, for our franchisees and for our brand! Franchising offers a higher chance of making a success of your business, but it doesn’t guarantee it. Franchisees have to be willing to learn, adapt to the market, take on board the support of the franchisor and put 100% into their business to make it work. Here at Century 21 UK, we’ll have all the marketing collateral ready for you to start using to generating business, but you have to put in the time and effort to get to know your local community and go that extra mile to differ yourself from competitors.
Myth 5: Once you’ve paid, you’re left alone
This is probably the most common myth. A good franchisor wouldn’t do this, as you’re investing in their brand and service. Century 21 UK doesn’t operate like this and that’s visible through our long-standing franchisee network and their detailed reviews. If it’s something you’re uneasy about, we completely understand. We’d recommend spending a day or two with one of our franchisees and seeing the support they get. At the end of the day, you’re representing the franchise’s brand and most franchisors recognise this.
If you’d like to learn more about franchising, in general or with Century 21 UK, you can find out more here or give us a call!