Franchising vs Setting Up An Independent Brand [DETAILED GUIDE]

As a buyer, you always have an option to purchase an independent brand or a franchise. However, each of them has its own pros and cons. To know whether a franchise or independent brand is better, you need to have a clear understanding of these both types of business.

Franchise

The franchise follows a set of rules and guidelines set by the franchisor. The franchisor always designs templates to develop his or her business, and it varies from location to location. If you are the one who is looking to use your business development skills and not gets cramped of putting your ideas, then the franchise option is the best for you.

There a lot of advantages of doing business, if you own a franchise. There is always a proven formula to drive sales for a well-known escape room franchise. Moreover, if the franchise which you plan to take up has already a good reputation in the eyes of customers, then you have a readymade sales for you.

Note : You can also learn about team building activities in Chicago if you are looking to build a brand via franchies.

Though you may not have been to any individual franchise earlier, you can be still confident about the quality of the product you offer to the customers. 

The consistency in operations, store design, and product are the key driving factors for any franchise to be successful. So, a good franchise always takes less time to establish in the market compared to establishing a proper customer base with an independent business.

If you buy a franchise, you need to play by the rules of the franchisor, and you have a potential customer base ready. 

On the flip side, buying a franchise has a lot of non-negotiable terms. You need to follow the rules, guidelines, and other business tactics as instructed by your franchisor.

Independent Brand

As discussed earlier, franchise means playing by the rules and guidelines set by the franchisor. Whereas, if you own an independent brand, you can set your own rules and regulations to develop the business. You control the human resources, vision and mission of the company. Also, you can choose the supplier base for your business and cut the cost accordingly. The development of the business and profits depend completely on the decisions taken by you as a business owner.

There is always a space to show your ability to improve business and creativity. However, if you are not capable of bringing business into a profitable mode within a short span of time, then there are chances of destabilizing your business. Unless you own an independent brand having a strong customer base, you cannot withstand in the market. On the flip side, if you own an independent brand, you need not pay any royalty and franchise fees.

Conclusion –

Hope, the above information has provided a piece of clear information on the difference between owning an independent brand and owning a franchise. Now, as a buyer, you need to decide and play by your capabilities.

Add a Comment

Your email address will not be published. Required fields are marked *