Independent Business Ownership vs. Franchising: Which Works Best for You?

| 01.08.2022
Buying a Franchise vs. An Independent Business

Buying a Franchise vs. An Independent Business

Nowadays, more and more people are considering getting into the business world. The idea of becoming their own boss captivates them. There are a lot of opportunities with great potential. But first you must decide what kind of business you want to get into and what are your goals for the future. Starting a business is a hard process with many challenges and pitfalls. However, if you’re determined to achieve success, you will find some available options.

Whether it's buying a franchise or starting an independent business, you must take into consideration all aspects of both models and choose the best one for you.

Should You Buy an Independent Small Business or a Franchise?

Should You Buy an Independent Small Business or a Franchise?

Before diving into the business world, you must figure out what goals you want to achieve and how you can accomplish them. Therefore, everyone who breaks new ground must figure out what business model reflects their vision the most – will it be buying an existing business or franchise assignment?

To answer this question, one should conduct a thorough analysis of the preferable market, considering all the pros and cons of this or that business. And finally, choose the most suitable option.

Opening an independent small business is a great opportunity to earn money and fulfill your entrepreneurial potential. You have time to implement your vision and develop your own business promotion strategies. Thus, you would be your own boss and you would not need to answer to anybody. However, an independent business requires a lot of investment and effort. You will face multiple challenges and obstacles along the way.

Buying a franchise is another splendid chance to start your own business. When opening a franchise, you make an agreement with the company owner on conducting business under their brand name. You get to use a ready-made business model, which usually comes with a lot of perks. Franchisors share their marketing strategies, lend necessary facilities and equipment, and offer guidance through every step of the way. In exchange, pay franchise fees and royalties. A franchise is a serious investment, and it also has some downsides. You should weigh all associated risks before jumping into this world.

Pros and Cons of Business Ownership vs Franchising

Look at the pros and cons of buying a franchise vs. own business and find out which option is the most suitable for you.

Pros and Cons of Business Ownership vs Franchising

A Chance to Follow Your Passion

Both models give you an opportunity to fulfill your desire to run your own business. So what's better: franchise or own business?

If your dream is to bring to market a completely new and innovative product or service, then the best choice for you is to start an independent business. Here, you can implement your ideas the way you want to and develop a concept that reflects your unique mission.

However, if your passion is to be a provider of a particular product, consider a franchise. You will sell goods that you really like and work under a well-established company that will help you with anything you need. With a widely recognized brand, you gain necessary tools to enter the preferred market quickly and have an ongoing customer flow.


If the possibility of being a boss attracts you, then an independent business is a right choice for you. This way, you are in charge of everything. You’re building a company from scratch and making all decisions concerning your business independently.

Whereas with a franchise, you’re limited in your autonomy. Franchisors provide you with ready-to-use product and business strategies that have long existed. Use approved equipment, merchandise and suppliers.

A Way to Success

A Way to Success

It is a known fact that starting your own business is very hard. The rate of success of this venture is low. Business ownership requires a lot of investment and effort. You will face a lot of challenges before embarking on the success path. With an independent business, you plan the development strategy, and the entire enterprise operation falls on your shoulders.

Franchises have a higher rate of success. Company owners are interested in smooth operation of their network so they support their franchisees. Franchisors share working strategies that have proved successful and profitable. They also help with promoting and grand opening. A franchise is a sure way to thriving business.

General Requirements

Starting an independent business requires investment, time, and effort. Entrepreneurs secure location, drawing up business plans, developing brand concepts, and finding suppliers. If you’re set on doing it, you need to be prepared for taking on a great deal of responsibilities.

A franchise is an excellent choice for those who don’t want to spend a huge amount of effort trying to figure out all aspects of running a business. You’re provided with a successfully operating business model established by a franchisor. What you have to do is follow this model and ensure its smooth performance.

Developments and Finances

Developments and Finances

It is very important to consider the amount of investment and business developments when choosing between launching an independent business and owning a franchise.

The sum of expenses when opening either enterprise is the same. It is often necessary to rent commercial property in a suitable location. You will also have to pay for repairs, hire employees, buy equipment and facilities necessary for doing business. Don't forget about working capital and investment in advertising. Starting a small business will require from $10,000 to $100,000. And here the franchisee is in a rather better position, because they do not need to invest in marketing or developing their own brand.

However, when purchasing a franchise, you pay the franchisor an entry fee, which can be about $ 5,000 - $ 100,000 depending on the franchise and a 2%-12% royalty.

Getting Started: Which Buying Option Is the Right One for You?

What is better: buying a franchise or starting a business? Both options have their pros and cons. Franchises are suitable for those entrepreneurs who do not want to take extra risks and want to receive guaranteed profits. Own business gives unlimited space for entrepreneurial creativity, and in the future, it can bring substantial income.

Do research before choosing the right option for you. We provided the major advantages and disadvantages of these two business models. Analyze them and figure out what venture is more suitable for you!

Vasil Gazizulin

Written by
Vasil Gazizulin
Founder of
CEO Expedition 2009 - 2014
Author of a book «GROW WITH A FRANCHISE»

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