For ages, people are confused to decide whether they should start their own independent business or buy a master franchisee. It is a huge decision for most people to know the exact place to invest their savings. There are many excitements along with worries when we think to start something new.
When you have already made your mind to take the adventure forward, then the major question comes that where to invest; franchise or independent business. As these two models are quite different from others, each has its own set of pros and cons. To get a better idea, here we will discuss both of the business models in the factors that are responsible for success.
1. Strength
When it comes to strength, the franchise business model takes the upper hand. In the independent business, the owner has to establish the brand in the local market and they have to do everything from scratch. On the other hand, when you will become the Master Franchisee, you will have much strength in terms of manpower, marketing, guidance, and experience as the franchisor is there to help you.
2. Brand Awareness
When you will start your business, you have to do everything by yourself. Marketing will be a huge factor for the new business as they have to produce brand awareness and credibility among potential customers. On the other hand, the franchise business always enjoys brand recognition; especially at the time of the internet.
3. Legal Issues
From the very first day, the franchise business is guided by a licensed attorney. From making the Franchise Agreement to handling mediation, the lawyer is one of the most important factors here. On the other hand, there is no such mandatory rule for independent business and there is no legal guidance unless you face any trouble and hire one.
4. Freedom
It is one such thing for which the franchisees crave. The independent business owner can innovate any product range and do the business in their own style. However, the franchisees have to follow all the rules made by the franchisor.
5. Investment
When you will build your business from scratch, there are many factors where you can control the budget to suit your pocket. The franchisees have to pay a huge amount as the franchise fees and royalty for every month.
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