Pros and Cons : Franchise Vs Independent Business

Want to start a business, but you’re not sure whether to a franchise or an independent business?

It is difficult to find the correct answer. As a well-chosen franchise can ensure a rapid improvement in your financial situation, but an independent business lets you decide how to approach and make your own innovative risks.

So you can understand the difference, it is good that you are clear that franchising is a marketing strategy and expansion, which started as an independent business. I had to overcome obstacles and build a good operational and management structure that proved to be robust and proven in order to minimize the possibility of getting risk or failure by the franchisee.

Now, franchise and independent business go hand in hand, as it was due to start with one, to reach the other. They are a joint effort to ensure that the independent business is conducted in such a way that minimizes their chances excess risk in the future.

Before making a decision, it is best to know what are the advantages and disadvantages of each, so choose the path you will follow in your future as an entrepreneur.

Pros and Cons : Franchise Vs Independent Business



1. There is a minimum risk at the time of investment, as you work on something already recognized as a good product.

2. As there is already proceeding business administration, how to handle this new company is simplified.

3. The operating costs are lower because they are entering a business located in greater economies of scale.


1. Little control on your part about the property of the franchise, as is predetermined.

2. It is necessary to incorporate more sophisticated structures to meet the needs of the franchise.

3. Expenditure on training to all staff who will be in charge.

Independent Business


1. It is innovative because it is more apt to respond quickly to changing customer demands.

2. Provides autonomy and job satisfaction to those entrepreneurs with little financial capacity to start their own business.

3. Has the ability to form alliances and partnerships, unlike large firms that are handled in demarcated competitive interests.


1. Starting a business of this type usually make radical changes in the economic level of the new employer because they must use their savings and incur various loans.

2. They tend to close their businesses very soon due mainly to the lack of financial resources, technical capacity or lack of customers for little or bad publicity.

3. Such companies often have less access to financing, or more difficult to obtain.