Franchising Far Outweighs Independent Business: A Comparison

by Alex Crough

Starting a business is a formidable task. It means creating business plans and marketing strategies. All of that takes away time and money from running the business and leaves the new business owner with a series of trials and errors in an area he or she may not be fully competent—or comfortable—in.

Owning a franchise, though, allows the new business owner to tap into a proven method of business. Marketing strategies have been set (and are often paid for) by the franchisor. The business plan has been proven in other markets and can offer a reasonable plan of action for creating the new business. It leaves the business owner free to do what he or she does best – run the business.

And that’s a strategy that pays off. After five years, some 90% of franchises are still in business while 90% of independent businesses have folded, according to RTOOnline.com.

The reason for the success is simple and it starts with the name. The company is already known and familiar to many potential customers, either through marketing or by being in another market. Franchisors want the franchisees to succeed and offer training and tips to raise the probability of success.

Of course, independent business does give full control to the owner and he doesn’t have to pay royalty fees. But add in the cost of increased risk, plus the marketing dollars to build name recognition and those royalty fees pale in comparision.

Of course, a franchise still is a risk and intense dedication is required. But franchising has been proven to be a safer, more effective, more productive way of generating income, and should be considered whenever opening an enterprise of your own.

Contact brandEXPANSION to get started on the road to owning your own business.

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