Why A Franchise Business Is Better Than Starting Your Own Business


When you start a business, it always is such an arduous process. From finding a good business concept, to building a plan for marketing, branding and sales. After you’ve established that plan, you need to work on your strategy, hiring process and lastly, raise the capital you need to finally get that business model moving. Sounds like too much work, right? This is where Franchise Business comes in.

But First… What Is A Franchise Business?

It is a business system that has been tested, refined and tested again. In simpler terms, it is an extension of an existing successful company. And gaining access to this type of system allows you, as a franchisee, to start faster and reduce your initial investments whilst avoiding the common mistakes you would make as a novice businessperson.

So below are three main reasons why it’s better to get a franchise instead.


Whether the franchisor has one or a thousand units, it will bring you so much more recognition compared to if you were to start your own business. If that name association brings with it goodwill, then there is no doubt that you would benefit from it. So instead of putting a disclaimer saying that you’re just new to the business, you can, as a franchisee, take the franchisor’s success story and make it your own.

Cost Benefits

Another advantage to purchasing a franchise is somehow contradictory. Franchises are actually less expensive to open than putting up your own business or brand. Why? Because as a franchisee, you already know what to buy in terms of inventory and equipment. You’ll also have the ability to get better pricing on items due to the franchisor’s ability to buy in volume and make pricing arrangements with respective suppliers.

Commanding A Higher Selling Price

It’s pretty simple. The more popular the brand, the easier it is for you to sell items even if they were at a higher price point. Why? Take for example, McDonald’s. While buying the franchise doesn’t necessarily mean that you’ll earn big, but the handoff from franchisor to franchisee will be easy. The reason for this is that McDonald’s already has the operational manuals and expertise to ensure a smooth transition. Besides, customers already know what to expect out of the brand because the company spends so much time and effort to make sure that the products stay consistent.

All in all, the real value proposition is found in the quality of the system and the amount of support that is given by the franchisor.