Home topics small-business-resources franchising Franchising Franchising Fight your franchising fears! Andy Simpkin February 16, 2011 More often than not, it is a combination of five key fear factors that frightens people into balking at the notion of a small enterprise or franchise business. After standing by Cafe2u from its early beginnings as a one-man van operation, I have noticed that many of those who have bought into my franchise had long fought personal demons prior to joining. They were commonly held back by the ‘Big Five’ franchising fear factors: misinformation, unfounded concerns, personal misgivings, fear of failure or the alarmist reactions of family and friends. Potential franchisees need to confront these fear factors and dispel fear through a considered rationalisation process, along with the acknowledgement that you are buying into a tried and tested business model that is already trading successfully with a proven track record, therefore the risks are substantially lower. Misinformation Investing into a franchise can be rewarding and highly profitable, but making the right choice requires a significant amount of careful and structured research to ensure this misinformation never occurs. Understanding the working capital requirements, total investment needed and estimated time required before reaching profitability are all important financial considerations an investor should research before making a decision to purchase a franchise. A great way to start researching before making the decision to invest in any franchise system is to get a copy of the franchisor’s disclosure document. This document outlines everything you need to know about