For many people, buying a franchise has proven to be a good choice,�but like any other financial decision, there is no one-size-fits-all answer to the question �Is a franchise right for me?� Buying a franchise involves a major financial outlay and owning one often requires an �all in� lifestyle commitment.�If�you�re thinking about whether your future could be in a franchise, follow the FTC Business Blog for a series we�re�calling Franchise Fundamentals. We�ll explore some of the factors to consider as you investigate franchise opportunities. The first topic: debunking myths and misconceptions about becoming a franchisee.�

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Myth #1:��Being a franchisee is the same as owning your own business.�Owning a franchise isn�t the same as being a business owner. In fact, the franchisor may control many aspects of your business � for example, your site location, your sales territory, the design of your retail establishment, and the products or services you can (and can�t) sell. Of course, the right franchisor may assist you with training and expertise, but that help comes with a price both in terms of finance and control.

Myth #2:��Buying a franchise will give you �be your own boss� status.�After years of earning a salary, many prospective entrepreneurs look to franchise ownership as a way to exercise autonomy. Not so fast. Franchise agreements often give franchisors authority not only over big-picture decisions at the outset, but also over some day-to-day operations � how you can advertise, what your sign must look like, where you buy supplies, etc. If part of your motivation for considering a franchise is to live that �be your own boss� lifestyle, investigate thoroughly first.

Myth #3:��Liking a company�s products is the best indicator that you�ll achieve success as a franchisee.�Successful franchisees often say it helps to like the product or service, but being a satisfied customer is no guarantee that a franchise is the right fit for you. Some franchises � say, auto repair or tax preparation � require technical expertise or special training. Are the skills you bring to the table a good fit for the franchise? And has your previous work experience given you the financial and management know-how essential for success?�

Myth #4:��Owning a franchise is an excellent source of passive income.�Who unlocks the shop several hours before opening, turns off the lights at the end of a very long day, and is there in between to handle payroll, customer service, and maybe even routine maintenance? It�s often the franchisee. Even franchisees who choose to hire day-to-day managers will likely find that owning a franchise involves a major commitment of time, effort, and resources. That cruise-ship-and-golf-resort image some people have of franchise ownership just doesn�t square with reality.

Myth #5:��Owning a franchise is a financial �sure thing.��The only sure thing in franchising or any other business model is that there�s no such thing as a sure thing. Spending your nest egg for a national name isn�t a guarantee of success. Certainly, your skills and commitment factor into the equation, but so do a lot of variables beyond your control � demand for the product or service, competition, and local and national economic conditions, to name just a few. What�s more, under your franchise agreement, you may have to pay the franchisor even if you�re losing money. Those are just some of the intangibles to consider if you�re thinking about a franchise.

Read�A Consumer�s Guide to Buying a Franchise�for more information.

More in the Franchise Fundamentals series: