Owning a small business can be one of the most fulfilling personal and professional decisions you make. Once you’ve decided to take the leap, you must answer the next question: would you prefer to own a franchise, or run an independent business?
Both options have advantages and disadvantages.
When you understand the difference between the two models and work with an attorney who has both franchise and independent business experience, you’ll be better prepared to make the right choice for your life.
First, an independent business must be built “from the ground up.” You are responsible for deciding what needs to be done, how, and by whom. Creating your business’s “operating system” from scratch takes work, but many business owners enjoy the autonomy it provides.
A franchise comes with many key processes and procedures already in place. But, it also means doing things the way “corporate” wants them done, even if they don’t work as well as systems you might devise on your own.
One of a franchise’s greatest strengths is that the brand is established already. You’re joining a much larger network of businesses whose name and products are already recognized. If the brand is strong, a franchise might receive a larger return on investment faster than an independent business. But if the brand is weak, your business suffers – even if your service is exceptional. Independent business owners must build their own brands, but they can’t be undermined by fellow owners. In fact, they can often capitalize on poor business decisions by companies in the same industry.
Whether you choose a franchise or an independent business, working with an experienced business law attorney will help you ensure your business launches successfully.