Build Your Own vs Franchise

Choosing to start your own business or starting a business under a franchise can be a difficult decision to make for any entrepreneur.

There are a large number of factors to take into consideration when determining which type of business will be the best for you. Many individuals enjoy the security that comes with using a business model which has proven to work for others while others enjoy the challenge and payoff associated with starting their own business concept.

It is important to take into consideration a number of factors which are crucial to determining whether a franchise is your best bet or if starting your own business will afford you the edge you need to succeed.

Starting Costs

One of the major benefits of utilizing an experienced franchise for your business is the knowledge and information available to better understand how much capital you will require to start your business. While there are variables which will ultimately impact the capital required to start your business, franchises have a good idea of how much capital to plan for in order to afford many of the items and equipment required to get the business up and running.

When running your own business, it can be difficult to adequately determine the costs associated with getting all of the goods and equipment which you will need to provide the products and/or services you plan to provide. In addition, it is important to ensure that you have the proper location, space, and signage to show your potential customers that youre open for business. There are a large number of items to account for in your starting budget and franchises provide you with access to resources and information on what is required to start the business.

Whether a franchise will be a cheaper or more expensive investment from the start is entirely dependent on the type of franchise, the requirements of the franchise, and any franchising or licensing fees which must be paid.

Operational Costs

There are a number of operational costs associated with running any kind of business. Business owners need to take into consideration their overhead and the goods which need to be purchased to produce their own goods and services. Franchises often work to ensure that the products and/or services which are produced by their businesses maintain a certain level of quality by providing the franchise owners with access to specific distributors.

Business owners running their own business need to find distributors for their goods and lack a specific guideline for how they produce their products and services. This means that the costs can be variable from time to time as the price of products and services used by the business may change over time and different distributors will certainly charge different prices. Often times franchises have more purchasing power and the ability to bargain for better prices due to their operation of multiple locations and will have more leeway with obtaining bulk discounts for their franchises.


Both franchises and self-owned businesses have access to same and similar methods of obtaining financing, but some franchises also provide their franchise owners with the ability to finance their business through franchise loans. As a result, there can be a strong benefit in selecting a franchise offering financing with competitive rates and repayment terms which benefit them over obtaining a loan through other means.


When operating a business requiring staff, it is important to take into consideration the amount of training required to have employees capable of handling the job. For instance, food services require the employees to have an understanding of how to handle and prepare the food in addition to how to handle specific tasks at the restaurant. This can take a considerable amount of time to put together the resources and information required to teach new employees how specific products and/or services are produced.

For a self-owned business, there is more flexibility in how individuals are trained. On the other side, franchises have access to training materials and other information produced by the franchising company which can be leveraged to reduce the amount of time required to train individuals. This can also reduce the costs associated with training an employee for a particular role and can ensure uniformity in how employees are trained.

Time Investment

In general, self-owned businesses require a much larger time investment in order to run and maintain the business. There are numerous aspects of running a business which a franchise can automated or otherwise utilize available resources. For instance, many franchise companies will assist their franchises in marketing and advertising their business. In addition, they may assist with finding employees and training them, thus leading to less time involved in handling these matters.

Business owners running their own business and brand have to invest more time in order to make the decisions where franchises will offer their own guidance. Some franchises have strict guidelines for the way their brand is portrayed in advertising which can make it less time-intensive to develop advertising campaigns.

It is important for anyone considering opening a business to take a hard look at what they are looking to achieve with their business in the long-term. If youre entirely dedicated to running a business and creating your own brand, going the route of creating everything yourself may be more rewarding and potentially a greater return on your investment. Utilizing the resources of a franchise, however, can reduce the time investment required to get a business up and running and can provide the guidelines needed to run the business successful. It is important to weigh your options and better understand the type of business you are interested in running and how much experience you have with that type of business.

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