Franchise Business vs Own Business: Which one will be the best?

Franchise Business

There are two ways of starting an independent business i.e. own business or owning a franchise. But both these ways has its own merits as well as demerits. We will discuss with both the ways, its merits and demerits.

The Setting up of Franchise Business

Franchise Business is buying the rights of a business into a particular area, location, or state. These are those businesses which requires less risk and efforts as the business is already in running position.


  • It doesn’t requires much effort on branding as the parent brand is already known among the public.
  • The franchise business gets support from highly expert management team. The management team helps in maintenance of the store where as making best strategies to promote the franchise and increase it’s cash.
  • If one is having little knowledge of running the store or doesn’t wants to invest the time, then he/she can take a franchise owned company operated model. In this, the company runs the business on behalf of franchise and handles the whole process. The franchise business owner just need to bear expenses and charges for running the store. 
  • As the company is already doing advertisement, so the franchise partner will not have to put extra amount for advertising funds. However, local level advertisements will be still managed by the franchise or it depends upon the terms and conditions between the owner and franchise business partner. 


  • Zero or no control over the business concepts: Since the franchise business owners are only a part of company and do not have much rights, therefore, they will have low or no control over the business concepts. They have to accept decisions and run according to the business laws either willingly or unwillingly.
  • Sharing in Profit with Parent Brands: A franchise needs to share it’s profit with the parent brand. This means that you will have no complete part of profit even if you invested a lot of amount in it. 
  • Franchise Costs, Operational Costs and other Expenses: Besides paying the fees, the franchise owner needs to pay the franchise business costs every period and the operational costs also add huge amount in the budget. Therefore, the overall cost becomes very costly. 

Starting Your Own Business

Starting your own business requires more ground level research and planning from scratch. As the system is not in process, so there’s lots of ideas and experiments are required to be done before coming to a definite concept. 


  • The owner has complete rights over its business, they can make changes, add or remove things as per their willingness.
  • The business owner will have right over their profits which they can use to maximise their business or sharing with investors.
  • Expansion and Growth: The owners can expand and grow their business by expanding their serrvices. As owners have complete right over their brand, so they can expand it and grow it without seeking anyone’s permission or paying any extra charges for that.


  • Since the business is new to the market, so it will involve a lot of investment and effort in its branding and recognition.
  • The business is always full of risks and rewards too. There may be risks too as the business has not started its operations and yet to be implemented. 
  • It requires a strong team in its bases. The budding business or start-up needs to have a strong team in its bases. It will require huge cost in selecting and building a stronger team.

So as we can see both has gots merits as well as demerits too. Therefore, the matter is always debatable. But it depends upon your choices too. For example, if you are willing to put so much effort, money and time then you can operate your own business. But if you wish to run a business aside without taking much effort then you can choose a franchise business. 

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Knack Ardour Team

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