Debunking Prevalent Franchising Myths
Posted on: May 19, 2021 by RMS Hospitality
As an insurance agent, when you meet with potential clients for the first time, you ask about the status of their current business and their plans for the future. With new and experienced entrepreneurs, you hear lots of hesitation about joining a franchise. Many business owners don’t fully understand what belonging to a franchise means, and they’re unsure how it will affect their insurance. Here are some of the most common franchising myths and the realities that they hide. Once you’ve educated yourself, you’re ready to help your insurance clients make an informed decision about joining a franchise.
Franchisees Have No Control Over the Company
Many business owners think that they’ll lose all autonomy once they join a franchise. However, franchise owners are so involved with overhead concerns that they step back once they’re confident in their franchisees’ abilities.
Sometimes, business owners don’t realize that their level of independence means they need their own insurance. Explore the Franchise Select Insurance Program with your clients to ensure that they’re fully covered.
Franchises Cost Too Much Money To Join
Starting a business of any kind costs money, and joining a franchise is no exception. However, when your clients open a franchise location, they receive help from the existing company’s infrastructure. With access to an established brand, a professional network, and marketing services, it’s often cheaper to start a franchise than an original business.
On the other hand, some of your clients wonder, “Is it worth owning a franchise to spend so much time and money managing other businesses?” The answer to this question depends on your clients’ budgets, management skills, and passion for business. For clients who are willing to put in the effort and sign up for a quality Franchise Select Insurance Program, though, franchises are often profitable.
Franchisors Don’t Welcome Independent Thought
Your clients have plenty of room for creativity with their companies, as long as their methods don’t directly contradict their franchisors’. They take the franchise’s brand and make it fit their location with special events and promotions. Generally, they can also create their own hiring processes and interior administration systems.
All Franchises Are Successful
You have lots of clients who have too much confidence for their own good, especially if they’re new entrepreneurs. When you meet to discuss their insurance options, remind them that joining a franchise is not a surefire way to success. To make a profit, your clients need top-notch business skills, work ethics, and interpersonal confidence. They also need to join franchises that are doing well; many businesses today are becoming obsolete or having problems with debt. Having coverage from RMS Hospitality Group’s Franchise Select Insurance Program covers some of their losses, but they still need sustainable business models and lots of backup plans.
About RMS Hospitality Group
At RMS Hospitality Group, our expertly crafted policies are written specifically for the hospitality industry. We offer custom tailored solutions to meet any venue’s specific needs. For more information, contact our knowledgeable experts today at (888) 359-8390.
Social Title: Busting Your Clients’ Most Common Myths About Joining a Franchise
Social Description: Your clients are full of misinformation about joining a franchise. Here are the facts behind franchising and how the process affects their insurance coverage.
Posted in: Franchise Select