Franchise vs. Start-up: Which One Works for You?


Are you tried with your current job?  Looking for a business opportunity? Facing the problem to choose the right business like Franchise vs. startup: which is better?

Don’t worry, now you are at the right place. Here we will help you to find a way to start your business.

Here, we are sharing two kinds of business opportunity which is now available in the market

  1. Franchise opportunity
  2. Startups or Traditional business model

Now the question is which one is better? Franchise business or traditional business model.

Let’s try to understand one by one

Advantages and disadvantages of a franchise

Every business has some advantage and disadvantage. let’s try to understand this with the 4 major components

  1. Success rate
  2. Brand recognition
  3. Fee
  4. Freedom

Success rate:  Franchise business model have a higher success rate in comparison with traditional startup business why because this business has an existing and proven ecosystem. Process and execution of all franchise are operated by a single system and also they have the responsibility of the business.

In this business model, the franchiser trained the franchise about marketing, dealing with the client and also about daily day to day activities.

The most common thing is “due to the ongoing support of from franchise such business get more and more success”

Brand recognition: In Franchise business model, you don’t’ need to create a brand awareness because the company has already done such stuff. Customer understands the product and services of the brand so you can get sales from day one.

 Fee: Franchise has some fixed amount for business. it might be a bit higher and apart of this, you need to pay some amount monthly or yearly as the brand fee.

 Freedom: One major problem occurs with this business is freedom. You cannot changes the product line even the decoration and all stuff related to franchise ecosystem. when you are working with the franchise, you must have to follow the instruction and guideline, the rule of the franchise to protect the ecosystem.

 Advantages and disadvantages of a Startup /traditional Business

when you are trying to open your own startup, you must have some innovation and creativity regarding the services and product line of business.

If you are the person with great dream and creativity ideas and also you are able to create your dreams into reality, you must go with a startup business.

The major thing which comes in such business is Professional freedom and growth. Unlike the franchise, here, you can implement your though, change the product line and even the complete business to meet the expectation.

The biggest challenges with such business are higher in Failure rate, according to the study, the startup has a higher rate of failure.

The study says, 25 % of business failed within the first year, rest 50% of total get failed within five year and approx 30% of remaining become fails in just next 10 years.

You must have this in mind while starting a startup and a traditional business model. there is a high rate of failure but if you get success in this business you will have tremendous growth too,

Conclusion : Hope you understand all the stuff about Franchise vs. startup: which one is the better option for you


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