Franchise vs. Starting Your Own Business – The Complete Overview

Business professionals are discussing in a business meeting Franchise vs. Business: Which One Works and brainstorming the information

Franchising vs. Starting a Business: Which One Works for You?

If you’re new to business, you might be wondering whether you should start a business from scratch or buy a franchise business opportunity. 

There are pros and cons to each type of business, but evaluating the differences will help you find the right fit.

8 Factors to Look at For Before Deciding

Let’s take a look at eight factors that you should evaluate before selecting a franchise business or starting something from scratch.

1. Brand Awareness

If you opt to start a brand new business, people won’t immediately recognize it. It will take time for you to build a brand and reputation. But when it comes to franchises, many consumers are already familiar with the brand, its products, and its dependability and quality. 

Even if your company is new to a region, the franchise brand’s reputation and online reviews will likely help local customers trust your business. As a result, the odds of success will be considerably better.

2. Control

For a startup business, the owner needs to create procedures and standards for the daily operations of their business. As an owner, they can exercise their management style and have complete control.

In contrast, in a franchise, the strategic control remains in the hands of the franchisor, and franchisees manage only operational issues. 

In other words, while you need to create your strategy as a startup owner, less strategy is required from you in a franchise business. This is because the franchisor has already created their strategy for success, and you only need to follow their guidelines.

3. Equipment and Supplies

Another significant difference between a startup business and an established franchise is the responsibility of securing good deals with your vendors. When you establish your own company, you must handle every part of your business. 

You are responsible for making sure that the products or services you provide meet high-quality standards, as well as negotiating all of your deals with vendors and suppliers while keeping within budget.

The franchisor, however, has established relationships with vendors and likely has stronger buying power ensuring the best deals.

4. Financing

A new business requires a considerable investment, but finansors are more willing to lend to an established brand than to a new business. 

In addition, startups have to spend time and money developing marketing campaigns and building brand awareness, while franchisees can rely heavily on the support of the franchisor and their existing marketing team and budget.

5. Marketing

In the early phases of a company, more money will need to be spent on marketing and promotion to build brand awareness. If you’re starting your own business, you may need to hire some help if you’re not an experienced marketer. 

A franchisor, however, may already have an in-house marketing department that can produce marketing materials for you based on their market research, strategy, sales projections, and budget, to aid you in marketing your business.

6. Speed to Market

When starting a business, an owner must conduct preliminary research and prepare a detailed estimate for supplies, equipment, and office space requirements. Then they must implement each stage on their own.

A franchise allows you to get up and running more quickly since they have all of these details sorted out, along with vendor partnerships that can get you set up in a timely manner.

7. Faster ROI

Startups can take a long time to build up a client base and brand name. There will also be mistakes that will likely cost money, time, and energy. 

The franchisor will have already built a reputation for you to build on, created appropriate marketing campaigns, and can train you on how to run the business effectively.

8. Franchisor’s Support

With a new business, the owner must conduct all of their own research, do their own marketing, and figure everything out on their own. This can be time-consuming and overwhelming.

A franchisor has already addressed everything for you, and should provide you with ongoing training, marketing, and operational support.

iCode School Franchise: The Easiest Way To Start A Franchise Business

If you’re seeking a franchise opportunity that allows you to start your own business while having an impact on your community’s youth, the iCode School franchise could be the ideal fit for you. 

The iCode School franchise teaches STEM education to students K-12. Their goal is to prepare kids for the digital landscape of tomorrow and the demand for workers with technical skills to support evolving technologies.

Their leadership team will support you through each step of the process from transparent conversations about finances and the business model, to ongoing training, and marketing and operational support.

Get in touch with an iCode School franchise representative now to see how you can  start your affordable, high-performing franchise.

Recommended Blogs

In a world where financial stability is becoming increasingly paramount, side hustles are no longer a novel concept but rather a strategic component of many individuals' income streams. But what makes a good side hustle and how does it fit into a broader financial plan? One interesting thought, have you ever considered owning a franchise as a viable side hustle? This prospect may seem daunting at first, but with the right franchise and the flexibility to be as involved as you want, it could potentially become a lucrative addition to your income. Let's take a look at the potential of franchise ownership as a side hustle, focusing on the thriving sector of STEM education franchises, and examine some key insights to help you make an informed decision. Understanding the Concept of a Side Hustle A side hustle is any type of employment undertaken in addition to one's full-time job. It's essentially an entrepreneurial venture that allows you to earn extra income while retaining the security of your primary job. Side hustles have been growing in popularity, particularly due to the changing dynamics of work brought about by digital technologies. In the gig economy, where project-based or temporary jobs are common,…
The thought of becoming a business owner can be both thrilling and daunting! Many people want to start their own business but are confused about how to get started. This article will help you understand what it means to own a franchise, decide if becoming a franchisee is a good fit for your objectives and personality, lead you through the entire process, and reveal the best franchises to buy in 2023. What Is a Franchise? A franchise is a business wherein the owner of a brand and business model grants you the rights to use these assets (together with all associated trademarks, goods, systems, and so on). The franchise owner is the franchisor, and you are the franchisee. Getting started with a franchise is a much easier task than starting something from scratch which is one of the biggest reasons many people opt for franchising over starting something of their own. A Step-By-Step Process to Buy a Franchise Understanding what’s involved with starting a franchise can alleviate a lot of the stress and help you discover the best franchises to buy in 2023. Step 1: Know Your Why Owning any business can be an emotionally, physically, and financially exhausting experience.…
Franchise Buying 101 Want to start a business but not sure where to start? Have you considered buying franchise businesses, but you’re not exactly sure how it works? First things first: How do franchises work? A franchise is a proven business model where you leverage the power of an established system and brand to help you turn a profit without having to figure everything out on your own. In this article, we’ll take you through the process of buying a franchise company, explore the costs involved, and answer questions you might have before jumping in. When to Buy a Franchise Before you make a decision, it helps to consider when you should buy into a franchise opportunity. When is the best time for you? To make that decision, you’ll want to consider your circumstances, financial situation, and business goals. To start, ask yourself the following: Do I have enough money saved for startup costs and ongoing expenses? Do I have access to financing? Do the market conditions in my local area make sense for this right now? Is this business model feasible within my current lifestyle and goals? Will my past experiences support my success in this venture? Does the…

Request Franchise Information

"*" indicates required fields

Do You Meet the Following Financial Requirements?
$100K Minimum Cash Liquidity?*
$500K Minimum Net Worth?*

Please review the estimated required initial investment here in preparation for your call. 

Hidden
Hidden
Hidden