Article By Laura Darrell, Author of Principles of Franchisee Success
Stepping into franchise ownership is exciting, but let’s be honest: it’s also terrifying. New franchisees are putting their money, time, and reputation on the line in hopes of building a successful business under a recognized brand. While franchising reduces some of the risks of starting from scratch, it doesn’t erase them.
Every prospective franchisee I’ve worked with circles back to the same three concerns: money, support, and people. The good news? Each of these fears has a clear path forward.
Fear #1: “What if I lose my investment?”
The number one concern for new franchisees is financial failure. They’ve often taken out loans, poured in savings, or involved family investors. The possibility that they’ll work tirelessly and still not break even keeps them up at night.
This fear isn’t irrational; markets shift, costs climb, and consumer demand can be unpredictable. While franchise systems provide guardrails, there’s no such thing as guaranteed profit.
The Fix: Do your homework on the numbers.
Review the Franchise Disclosure Document carefully, especially Item 19 (financial performance representations). Talk to existing franchisees about real costs and timelines to profitability, not just one or two, but a range. Then, build your own “what-if” model: What happens if sales come in 20% lower? What if labor costs rise?
Planning for these scenarios doesn’t make you negative; it makes you prepared. Franchisees who enter with realistic expectations are far more resilient when challenges arise.
Fear #2: “What if I don’t get the support I need?”
On paper, franchising looks like buying into a proven playbook. But prospective owners worry: Will the franchisor really be there for me?
Support is promised in the form of training, marketing, supply chain help, and operational guidance. But many first-time owners wonder if those promises will hold when things get tough.
The Fix: Test the system’s support before you buy.
During discovery, pay close attention to how the franchisor communicates. Are they transparent or evasive? Ask to sit in on a training session or shadow an experienced franchisee for a day. Most importantly, connect with the operations team, the ones you’ll rely on after you sign.
If they’re responsive and practical now, you’ll know you can count on them later. If not? Consider it a red flag.
Fear #3: “What if I can’t lead the people?”
The third fear isn’t about money or the franchisor, it’s about the team. New franchisees often underestimate how much success depends on people. Recruiting, training, and retaining staff in high-turnover industries like restaurants and retail is no small feat.
This fear sounds like: What if no one wants to work for me? What if I can’t create the culture I imagine?
The Fix: Invest in your own leadership.
Being a successful franchisee isn’t just about following the brand standards; it’s about building a culture where people want to stay. Take a leadership course, shadow a respected operator, or work with a coach to sharpen your leadership.
People don’t leave brands, they leave bosses. Strong, steady leadership will become your most valuable asset.
Quick Read: Three Ways to Calm Your Nerves Before You Sign
- Run the Numbers Twice. Model the worst-case scenario so you’re never blindsided.
- Talk to the Operators. Fellow franchisees are your best source of truth about support and day-to-day realities.
- Focus on Leadership, Not Just Logistics. Systems and marketing help, but people make or break your business.
Final Thought
Fear is part of the franchise journey. If you didn’t feel some anxiety, you wouldn’t be taking the risk seriously. But fear doesn’t have to stop you. By pairing each of the big three concerns, money, support, and people, with practical steps to address them, you’ll step into ownership with more confidence.
Franchising works best as a partnership. The franchisor brings the system, but you bring the leadership. Do your homework, test the support, and invest in yourself. Do those three things, and fear shifts from a roadblock into fuel for your success.
