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What Makes a Franchise Different from a Small Business

: : Franchise : ( words)

A Franchise and small business are both business models that you can own.

There are differences between how the two are run, and each has its own set of pros and cons. You might find the idea of operating your own business to be very appealing but there is more leg work required in launching a business and making it successful than buying pre-made franchise off the shelf and running it. We have highlighted the distinct dissimilarities between franchises and small businesses so you can better gauge your options.

Method of Operation

Franchises come with a complete package of a business model along with the strategies and framework that made it successful and you are bound by contract to follow them. Business opportunities, however, are left to you. You may run it however you like. And the previous owner who is selling the business to you will or will not provide you the initial support to get things started. You are left on your own here.


Franchisors provide you with their branding elements to incorporate them in all designs that make that franchise identifiable with the customers. You cannot re-brand your franchise or change its trademark or trade name.

With a small business, you can brand it however you want it. If you have bought the business from someone else, you can choose to carry its current branding or rebrand the entire domain to your liking.

Support and Training

Whether you are an experienced professional or new in the field, franchisors provide you with the training you need to make sure you succeed and they provide ongoing field support as well. In small businesses, there is no such deal. If you are starting from scratch, you are your own trainer. If you have bought it from someone, you are still your own trainer. It does not concern the previous business owner if you succeed or not with the business.


Franchises inquire large investments since you are buying a whole brand that already has national or international recognition. You also have to pay monthly royalty fee to the franchisor, which is a small fraction of the revenue you made. The investment is comparatively small in case of a business opportunity, because you are purchasing a small portion of what the franchisee buys from a franchisor. Also, there are no periodic fees involved. Once you make the initial payment, the business is all yours to do as you please. You do not have to pay anyone anything else.

You might want to buy a franchise if you are new in business and you require directions and instructions. But if you are an experienced professional, you might want to operate everything your way. Whatever the case may be, the benefits and instant returns you get from franchises cannot surpass small businesses. Typically, it takes years to make a business successful. But in case of franchises, you get faster returns on investments that make up for the cash outflow in the initial stages.

Start looking at the different franchise opportunities are available to you TODAY at FranDepot.com.

Brad Sugars founded the brand Action International in 1993 when he realized there was a disconnect between business advice and implementation. The answer was Action! Brad Sugars created a business coaching company so that business owners throughout the world can realize their goals in business. Today the company is known as ActionCOACH. To learn more about business, visit Brad Sugars Review blog!


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