Deciding between starting a franchise versus a business opportunity can be an exceedingly difficult task. Both options require a great deal of responsibility and financial backing, so it is important that you make the right decision.
Shanisha Kurani is a leading franchise owner who has successfully opened the doors to a variety of restaurants including Dunkin Donuts, Long John Silvers, and Pizza Hut. Although Shanisha Kurani is a franchise owner, she had to weigh out the pros and cons regarding opening a franchise versus starting her own venture over thirty years ago. Shanisha Kurani hopes to provide unbiased insight to help potential business owners make the difficult decision, franchise or start-up?
- Branding. Shanisha Kurani notes that one of the major pros to opening a franchise is the established branding. Shanisha Kurani notes that consumers will already recognize your business and expect consistency. All franchises offer the same product; thus, previous consumers will continue to support and reinforce the brand with minimal effort on your part. The downside to franchising is the inability to be creative. Shanisha Kurani notes that small-business owners will have the opportunity to establish their own brand and identity, whereas franchise owners will not. Shanisha Kurani states that small business owners can view options as suggestions, but franchise owners are presented with rules.
- Ongoing support. Shanisha Kurani reveals that franchise owners will be presented with ongoing support. General support programs will include personnel for marketing, staff training, technology, and any other aspect that relates to everyday operations. Shanisha Kurani notes that start-up companies will not be provided with guaranteed support and they must seek out assistance on their own. However, Shanisha Kurani states that small business owners will have more freedom with how they run their business, whereas franchise owners have to follow mandated policies.
- Cost. Shanisha Kurani notes that small business owners will most likely have a higher investment cost to buy and operate their business. Although start-up owners will pay a higher price, they will also have more control over the investment decisions. Shanisha Kurani states that franchise owners will possess a lower total investment cost, but they will need to fulfill obligations set by the franchisor. Additionally, Shanisha Kurani adds that franchisees will be required to pay royalties on an ongoing basis. Unlike small business owners, franchise owners will lack the power to make major investment decisions.
Shanisha Kurani believes that there are definite pros and cons that go along with both options; you just have to decide which alternative is the most suitable for your needs.