The Advantages of Franchising Over Independent Business Ownership

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While starting a business, there are always two options for an individual: establishing a new business or going ahead with an existing franchise. Selecting which is better for you can depend on different elements. However, choosing the one with higher security can be a better option. When you compare them, you will find that franchisees have been more successful compared to independent ownership of a business.

The most significant reason behind the success is that franchises get full support from their franchisers. They have pre-used strategies and guidance for operating the existing business model. On the other hand, independent owners have to start everything from scratch. Hence, the success rate is lower for them. In addition, franchises are more secure than independent businesses they have a known brand name that increases their success rates.

Some advantages of franchising over an independent business include:


In start-ups, the advertisement and marketing costs can be more than expected at times, but that’s usually not the case with franchising. That’s because franchises already come with a recognized name. Thus, you don’t need to spend much on its marketing. For example, if a famous quick service franchising restaurant with a known brand of coffee or crispy fried chicken franchise opportunity will gain its customers even with minimal marketing. They do not need to build the trust of their customers on the brand or the products from zero, as in the case with independent owners.

Less time

From signing the legal documents to opening the doors of your business, franchising takes comparatively lesser time to start. Independent companies can be more time-consuming than expected as they need to invest a reasonable amount of time researching the market. Additionally, they also need to put together all the required materials and office tools. In the case of franchises, they don’t have to conduct thorough research as independent business owners.

Site selection

Location plays a vital role in your business’s success. Start-up owners with no experience can struggle with selecting a proper site for the company. While if you are a franchisee, you can get sufficient guidance and help from the franchisee network and franchisers. Their experience can help you lay the proper business foundation without putting in much thought.

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Lower failure rate

Statistics show franchises have a relatively lower failure rate than solo businesses. The reason is that they get support from their franchisee circle along with all necessary bits of advice to boost up the sales. On the other hand, independent business owners sometimes lack experience, management, planning, leadership, and guidance that leads to the failure of the business within a short period.

Lower risk factor

Both start-ups and franchises have potential risks, but the level of risk in franchises is lower. The products of the franchising business are already tried and tested in various other markets. This gives you confidence and trust in the product, which is essential. If you are not confident about the product you are launching in the market, how will you persuade the customers to purchase it?

Faster ROI

It takes time for a start-up business to emerge from the ground, build loyal customers, and have a brand name of its own. Hence, the return of investments takes longer, unlike in franchises that generate revenues from the start with established brand names and reputations.

Equipment and supplies

Franchising has a more significant influence among traders and suppliers. You do not have to compromise with the quality and prices as the franchiser has done the work for you. Independent owners may face difficulties because they have to fix prices according to the market rates, resulting in compromising the quality of supplies and pieces of equipment.


A franchise is more scalable than an independent business in many ways. For instance, the common obstacle in scaling is finance. However, when you own a franchise, you can get loans from the franchiser to grow your business. Although you can also get business loans from banks to run independent businesses, the interest rates can vary largely.

Geographical scaling can also add up to your profits as a franchisee. You can start a business at one location, and after some time, you can expand it to multiple desirable locations. The advantage here is that when you build a relationship with your franchiser, the process to open multiple franchises becomes seamless.

Starting a franchise business is always more secure and more likely to be successful. You can get all the support from successful people who have already worked on the same business model and insights on the loopholes to back you up. Hence, starting and running a franchise become simpler as compared to an independent business.

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