Let us start by giving the definitions to both a Franchise and an Independent Business:

A Franchise is a business that is owned by individuals called Franchisees. Franchisees operate under the brand of a successful, established and recognized the company, called the franchisor.

An independent business is a business that is free of outside control. It is also owned privately and owned by an Individual or group of people but does not have company shares sold on the stock market.

Franchisees operate under the brand of a successful, established and recognized company.

The difference between independent business and franchise is when you acquire a Franchise you are buying into a business marketing system that has an established business model that usually includes a recognized brand. The marketing for a Franchise is generally done by the franchisor for the benefit of all the Franchisee’s and when other Franchisees advertise other Franchises benefit indirectly. Whereas an Independent Business you are Independently responsible for generating a business model.

Each business model has its advantages and disadvantages, however, buying into a Franchise will increase your chances of success based on the company already going through growing pains and working out problems.

The chances of your Independent business surviving the first 5 years are said to have less of a success rate, then that of owning and operating a Franchise.

The main benefit of for operating a franchise is that a franchise will already have an established brand. The franchise generally provides assistance to the franchisee in finding an optimal business location. The franchise would generally provide ongoing support and training that would minimize past mistakes.

Operating a franchise means an

established brand

It is not commonly assumed, but operating a franchise is generally cheaper than starting your own business, for example when purchasing items to sell franchises generally would have access to bulk discounts because the purchased goods are bought at a bulk discount.

Franchises are also protected from competition within the group.



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