Franchising: The pros and cons

Written on the 11 March 2013

Running your own business can reap huge personal and financial rewards. One path is to start your own independent business, while the other is to choose a franchise model. Which is the best business decision? Here are some of the pros and cons of each scenario.

A winning formula

With an established franchise, you get a complete, out-of-the-box business. You become part of a proven business model that has a successful operational and managerial track record, plus you bypass the tricky trial and error period thats typical of independent start-ups. However, theres no flying solo in this scenario you must follow the franchisors operating system and policies, some of which may affect your own creativity and management approach. 

Brand awareness

Building a brand from scratch can be timely and expensive, but with a franchise you have the priceless benefit of marketing an established brand. Clients value the reliability and uniformity of franchises. Just keep in mind that there are responsibilities and requirements that come with upholding an existing brand.

Support systems

Franchises offer an enviable balance for business owners. Not only can you independently run your own business, you also reap the benefits of a larger commercial network such as advice and information sharing with like-minded business owners. The downside? This support system brings with it a certain level of dependence. Any bad decisions made by the franchisor may have a ripple effect on your own business. Thats why it pays to choose a franchise that has lasted the distance.


With an established franchise brand behind you, lenders may view your financing application more favourably than a solo business owner starting out with a fresh idea. Some franchises are even bank approved, which further streamlines the financing process. On the other hand, franchisees are required to pay franchise fees and sometimes royalties additional costs that need to be built into your financing budget.

Exit strategies

Franchises do tend to have a better track record of survival compared to independent startups. And if there comes a time when you want to sell, a successful franchise will generally have a larger market appeal than a niche, independent business. The flipside is that franchise contracts may include restrictions around the sale of the business.

Take your franchising search to the next level. Contact Snap today to discuss the benefits of our franchising opportunities.


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