Most jobs, tax revenue and wealth I'm from high-growth companies that start with a great idea and then scale it. And when it comes to scaling, franchising is an increasingly popular option. International Franchise Association found that American franchises sold more than $825 billion in goods and services in 2022—a number that is only expected to grow.

Together, we both have decades of experience working with consumer brands and franchises and learning it in Tariq Farid Institute of Franchise at Babson Collegeincluding as recently launched co-hosts Stars of Franchising Podcast. We've seen firsthand how franchising provides a great model for companies looking to expand and scale, as well as individuals looking for entrepreneurial opportunities to create economic and social value.

However, among students, experienced executives, and everyone in between, we often encounter myths about franchising—from the perception that franchises are self-directed to the notion that they offer no room for creativity and innovation. Here are three common myths we come across, plus our advice on why franchising might be right for you.

Connected: Busting franchise myths and choosing the right opportunity

Myth #1: Franchising can succeed on autopilot

or successful franchise it requires many different partners. Franchisors that create a brand. Franchisees working to expand that brand. Bankers and investors who arrange financing.

Franchising can pave the way to growth through an established brand and operational model. Opening a new store is easier when you can learn from a company's playbook for success. But that doesn't mean you can sit back and everything will be taken care of. Having a fitness plan that will deliver results is not the same as working out.

A franchise opening a new store must navigate everything from choosing real estate sites and planning for the launch to leadership, labor and supply chain management once it's up and running.

Almost every franchisor and franchisee we speak to says they needed courage, resilience and a entrepreneurial mindset to succeed.

Soozie Lazenby, who owns and operates four StretchLab franchises in the Tampa Bay metro area, he told us that “Franchises don't run themselves. There's no such thing as a half-absent owner.” Similarly, Neal Faulkner, who went from a single Dunkin' Donuts store 23 years ago to multiple locations and 500 employees today, insist that “Franchisees must work in the business and be willing to do any task!”

Franchising is a great opportunity – but only if you're willing to do the work.

Myth #2: Franchising is not entrepreneurship

People usually picture entrepreneurship as starting from nothing and bringing an idea to life. But it takes just as much creativity to scale something that already exists.

Neal, the Dunkin' Donuts franchisee, grew up on a farm in Kansas, which he describe as a very entrepreneurial environment. Franchising offered a similar requirement to take ownership of a wide range of tasks and be creative in doing them. Opening a new Dunkin' Donuts location felt like starting a business from scratch: Neal had to figure out construction, conduct bank negotiations, manage his employees and more.

The perception that franchising is not entrepreneurial rests in part on an image of franchising as a top-down model. However, many franchises are laboratories for experiments that can then spread to the rest of the brand. McDonald's Egg McMuffin, Dunkin Donuts' Munchkin and Planet Fitness Black Card were all products that began at the individual franchisee level.

Franchising can offer the best of both worlds: the opportunity to be an entrepreneur yourself and to benefit from the entrepreneurship of others. Babson College President and Jiffy Lube International Co-Founder Stephen Spinelli Jr. common with us how when a Jiffy Lube franchisee discovered a creative innovation, it could be rolled out to all other stores within 48 hours.

Amanda Bialek, a franchise marketing expert, summarized is best: “Franchising offers the opportunity to harness the entrepreneurial spirit with the guidance of a great playbook.”

Connected: Aspiring entrepreneur? Consider perfecting something that has already been built

Myth #3: Franchises are not local and are not intended for certain people or types of business

Some people see a franchise as an extension of a large corporation. But many times, franchise brands run by individuals from the community, your neighbors, who are looking for a path to ownership and entrepreneurship. These locally owned and operated franchises then create jobs and social impact, generating community benefits.

Similarly, there is a perception that franchising is suitable for people who have accumulated a significant amount of capital and are looking for a sustainable business opportunity. But today's wave of franchisees is youngerand they come up with new ideas to stay in touch with new trends.

Food Arrangements is seeing a trend of new franchise owners who use Internet-driven tools to connect with customers. Franchisees launching a new brand may also be younger. Cousins ​​Jim Tselikis and Sabin Lomac joined together found Cousins ​​Maine Lobster at Theirs late 20s and early 30s—and secured a 15% equity investment from Barbara Corcoran in Shark tank.

Just as young people shouldn't overlook franchising, neither should people interested in businesses outside of the typical restaurant brands like Panera or McDonald's that people often think of as franchises. While franchising is a great model for the food industry, many other businesses, from gyms to urgent care centers to car dealerships, have found success in franchise model.

The big message: Franchising is much more local and broader—in terms of who the entrepreneurs are and the types of businesses they operate—than you might expect.

Connected: Is franchising right for you? Here are 4 questions to help you decide.

Franchising may be right for you

Franchising offers the opportunity to use a proven brand or service to achieve results. It offers the opportunity to be an entrepreneur. It offers room for growth – multi-unit franchise now ACCOUNT for most franchise units in the United States. And despite perceptions, many types of people and types of businesses can embrace franchising.

If the franchise is right for you it depends on your goals and objectives and the quality of the franchisor. No matter what, success in franchising requires courage, leadership and an entrepreneurial mindset. With those in hand, franchising can provide a resilient path to economic success.