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  1. Nunzio Presta

    Nunzio Presta Business Owner Entrepreneur

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    The first step to buying into a franchise system or existing business is to understand the difference between the two models. Start by doing some research to ensure that you make an educated decision that truly suits what you aim to accomplish and also suits your lifestyle. Check out this insightful list outlining the differences between a franchise and an independent business courtesy of Canada Business Network:

    Franchise:

    • Proven track record — This is an established business with a proven concept; there is less risk and less initial capital required than with starting something brand new. Similarly, when it comes time to sell, you may have an easier time finding prospective buyers for a known entity.
    • Built-in customer base — People know what to expect from your business because they know the brand, and trust the product or service
    • Setup, support and training — Having a parent company means having the infrastructure and processes in place, from equipment to uniforms to corporate advertising, rather than having to develop them on your own. Other franchisees can also be a source of support.
    • Set of rules and regulations to follow — When you operate a franchise, you have less control over the operations than if you own an independent business; you also have to pay a percentage of your revenues to the parent company, which reduces overall earnings.
    Independent business:

    • More control and responsibility — You have the autonomy to set your own rules, but the success or failure of the business rests solely on your shoulders.
    • No fees or royalties — You keep all of your earnings without sharing any of the profits
    • More opportunity and risk — You can sometimes find a business that may not be doing well but has potential. If you are willing to do the work, you may reap the rewards; you must be prepared if things don’t turn out as planned.


    When you’re confident and ready, start the search for the business or franchise of your dreams by joining the BizON marketplace - mybizon.com :)
     
    Sid likes this.

  2. dyanmarie25

    dyanmarie25 Entrepreneur

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    Since I am more of a hippie, I think an independent business would suit me best. And as a person who's pretty new in being an entrepeneur, I think it's more ideal than to invest right away in a franchise business.
     
    Nunzio Presta likes this.
  3. pwarbi

    pwarbi Entrepreneur

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    Depending on the size of the franchise, sometimes the start up cost can be huge, and here in the UK, for a person to open up a store as part of a franchise can cost thousands of pounds, a lot more than simply starting up their own small business anyway, and that can put a lot of people off.

    A friend of mine started off their own business on a market stall. He spent £500 on stock, and it cost him £50 for the price of the stall for 5 hours a week and he made a profit, steadily building it up week by week.

    When you contact a brand such as McDonald's or KFC about a franchise store, they want £100,000 just as a start up fee so you can use their branding. Bit of a difference...
     
    Nunzio Presta likes this.
  4. Sid

    Sid Entrepreneur

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    I just started my own independent business, I did lot of research on franchise vs independent business and then I choose what best suits on me.
    I don't have too much capital for start but all hard work of me will give results only to me.
     
    Nunzio Presta likes this.

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