Franchise businesses have become very popular in India. From small food outlets to big retail stores, you will see franchises in every city and even in small towns. Many people are interested in starting a franchise business because it seems like a ready-made, successful business idea.
But with popularity comes confusion. Many people believe things about franchises that are not true. These myths can stop you from making the right business decision.
In this blog, I will talk about some of the most common franchise business myths that people in India still believe. I will also share personal insights and real examples from the market to help you understand the truth clearly.
📌 Myth 1: Franchise Business Is a Guaranteed Success
Reality: No business in the world can guarantee 100% success — not even a franchise.
Many people think that if they take a franchise of a famous brand, they will automatically make profits. But this is not true. A franchise gives you a proven business model, training, and brand name, but your success depends on how well you manage the business, your location, customer service, and market demand.
Personal Insight:
I know someone in Delhi who opened a famous pizza franchise. He thought just the brand name would bring in customers. But he picked a location where people preferred Indian street food over pizza. His outlet closed within a year. So, even with a good brand, your business skills and location matter a lot.
📌 Myth 2: Franchises Are Only for Big Investors
Reality: Today, franchise business opportunities are available in every budget range.
Earlier, people believed you needed ₹50 lakh or ₹1 crore to start a franchise. But now, there are franchises starting from as low as ₹3 lakh to ₹5 lakh, especially in food carts, cloud kitchens, and service-based businesses like salons and educational institutes.
Example:
Momo Nation Café is a great example. It started as a small food franchise with affordable investment options for new entrepreneurs. Many people in tier-2 and tier-3 cities have successfully opened Momo Nation Café outlets with investment starting at ₹5 lakh.
📌 Myth 3: The Franchisor Will Handle Everything
Reality: You are the owner of your franchise outlet. The franchisor provides support, but you are responsible for daily operations.
Many first-time business owners believe that the franchisor will take care of staff, sales, and local marketing. But in reality, you need to manage your staff, handle customer complaints, keep stock, and do day-to-day marketing in your local area.
Expert Opinion:
As per business consultant Anil Kumar, who has helped over 100 people start franchises in India,
“People who think franchising is a ‘hands-off’ business often fail. A franchise business needs the same dedication, time, and effort as any other business.”
📌 Myth 4: Franchises Don’t Fail
Reality: Even franchises can fail if not managed properly.
No matter how big or small the brand is, poor management, wrong location, or lack of customer service can lead to failure. Market conditions can also affect franchise outlets.
Case Study:
A famous US fast-food chain closed multiple outlets in India because they didn’t adapt their menu and pricing to Indian tastes and preferences. This proves that success is never guaranteed in business.
📌 Myth 5: All Franchise Agreements Are the Same
Reality: Every franchise has different terms and conditions.
Some franchises charge royalty on sales, while others ask for a one-time fee. Some franchises allow location flexibility; others don’t. It’s important to read your franchise agreement carefully and understand every clause before signing.
Tip: Always take legal advice or consult a franchise expert before finalizing any agreement.
📌 Myth 6: You Need Prior Business Experience to Run a Franchise
Reality: Franchises are designed for both experienced and first-time business owners.
One of the biggest benefits of taking a franchise is that you get complete training, business guidance, and operational support from the franchisor. Many successful franchise owners in India started their journey without any prior business experience.
Example:
Ritu Sharma from Jaipur opened a small beauty salon franchise after working as a school teacher for 10 years. Today, she runs 3 outlets and employs 25 people.
📌 Myth 7: Only Big Cities Have Good Franchise Opportunities
Reality: Small towns and tier-2, tier-3 cities are fast-growing franchise markets.
With rising incomes and changing lifestyles, people in smaller cities are looking for branded food, retail, and service outlets. This makes small towns a profitable franchise market.
Expert Insight:
According to a 2024 report by Franchise India,
“Around 60% of new franchise outlets opened in India are in tier-2 and tier-3 cities.”
📌 Myth 8: It’s Better to Start Your Own Business Than a Franchise
Reality: Both models have their advantages and risks.
Starting your own business means complete freedom, but also higher risk because you are building everything from scratch — brand, customer base, product development, and systems. A franchise gives you a ready brand, proven systems, and support, reducing the risk of failure.
It depends on your personality, budget, and long-term goals.
📌 To Sum It Up: Don’t Let Myths Stop You
A franchise business is a great way to start your entrepreneurial journey, but only if you know the facts. Don’t believe in half-truths or marketing hype. Do your research, ask questions, and talk to existing franchise owners.
Franchising is not a shortcut to success, but it’s a safer way to enter the business world with lower risk than starting your own brand from zero. If you stay informed, work hard, and pick the right brand and location — you can build a profitable and long-lasting business.
📌 Final Tip:
If you are serious about investing in a franchise business, connect with professional franchise consultants or attend franchise expos happening in your city. It’s always better to learn from experienced people before investing your hard-earned money.