Franchise vs establishing an independent business



In aggressive business dais, companies utilize effective tactics to perform better in competitive market. Several economists have realized the great significance of franchise business which are successful to enhance company’s performance and make profitable with in short span of time.


Franchising has emerged as an effectual way to run business successfully in association with well recognized company. Franchisee, who espouses the strategies of established company, is in the position to compete with his rival by using franchisor’s brand name. People, who are interested in business realm, have a choice to purchase a franchise in order to gain short term profit.

There are major grounds for selecting franchise for entering into business world. The most important factor is that franchise has a definite chance to succeed in market as all the policies are well prepared, its brand name is popular and well established where as an entrepreneur who launches a new independent business has to work out all start up steps which may lead to many problems and there is no surety of financial gain. Franchising practices are flourishing since many decades in our societies. It has grown as an important intellectual property leveraging strategy for a range of product and service companies at different stages of development.

According to business scholars, franchise for marketing and distributing product and services is only suitable for some companies. All companies may not get success in buying franchise. Franchise is a good option for person because by buying franchise for his business, he gets all the equipment, supplies and instruction or training required to start the new business but person who sets up an independent business has to exercise from scratch and he may get success at later stage. Franchise gets benefit from the collective buying power of the original company because the franchisor has a capacity to buy in bulk and the savings can be distributed to franchisees. Inventory and supplies cost is less as compared to person who has an independent business establishment.

Franchise issue in business region is a matter of fuming debate. Many challengers argue that why retailers avoid independent business and purchase franchise. Though many people have dream to establish their own business but major drawback of maintaining a business is that people must incur financial hazard. Own business establishment offers numerous exciting opportunities to enhance prowess, gives liberty in work hours.

Many business professionals contended that Businesspersons who have developed a successful business often think that if they should franchise they can generate more revenues and expand their operations. Business experts accentuated that Franchising is marvellous way to obtain expansion capital. Supporters of independent business advocated that being an independent business owner, entrepreneurs have more control over their finances. When operating a smaller business, business persons have outstanding customer relationships and they can take independent decisions about their business.

Regardless of numerous demerits of an independent business, there are considerable drawbacks that impact both owner and clienteles. Such as there is great financial risk and do not have more control over their employees. Additionally, Independent businesses have to undergo cut throat competition with local independents.

In the debate of franchise and independent business set up, franchise weighs more. Franchise offers superior alternatives to people who desire to propagate swiftly in business. The major benefit to buy a franchise is that franchise has minimal level of risk in downfall of business.



To encapsulate, franchise system enables a company to rise in global market. The main intent of any organization is to grow rapidly and hold high status in international market through effective strategic planning. Franchise provides excellent opportunity to persons to thrive in competitive world instead of launching their own company.  

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