Franchise vs Your Own Startup Business? Pros and Cons

Starting a new business is an exciting time for entrepreneurs. There are always plenty of possibilities, and uncertainties, when it comes to getting your business off the ground. It starts by deciding which route you take toward business ownership.

Are you thinking of opening a franchise or going the startup route and building a business from the ground up? Both options have their perks, as well as their disadvantages. Here is what you need to know when considering franchising vs your own business and how to decide which is right for you.

Advantages of Starting a Business from Scratch

For many people, the idea most commonly associated with starting your own business is building your company from the ground up. That means starting from scratch and creating your ideal business from the seed of an idea.

Forming a startup is both thrilling and an incredible amount of work to take that company from a seed to a thriving business. These are the pros and cons of starting a business on your own and what you should consider.

Experience True Independence as a Business Owner

Many people choose to start their company from scratch for the opportunity to really own their own business. Building a startup means the only person you answer to is yourself, and the only rules you follow are your own. This freedom allows you to work at a pace you decide and have the final say in all decisions when it comes to your business. Of course, this freedom can also be a double-edged sword.

Because the only rules and plans you need to follow are your own, that also means you’re going to have to make them from scratch. You will need to develop your business plan, outline your operations, and figure out everything yourself. There’s no one to help out or guide you if you travel into uncharted waters.

Create Your Own System

Another aspect of independent business ownership that people enjoy is the opportunity to develop and create their own system for business success. As a startup, you have the opportunity to define what your process looks like, and each step that needs to be followed along the way.

Depending on your past experience, you may already have ideas of how a business should run. It may be why you are starting your own! For others, developing these processes from scratch can be a tedious and time-consuming task requiring hours of research, planning, and testing.

Build Your Own Brand

If you’ve had the dream of business ownership for a long time, then you have probably thought long and hard about your branding. You may already have a tag line picked out! Starting an independent business is a chance to see your business ideas become a reality. That means determining your own brand from the ground up and defining it with the core values and messaging that matters to you.

The downside to building your own brand is that you’re starting from the ground up. Building a brand and establishing a reputation is not something that happens overnight. It can take years to build a brand, and even longer to establish a positive reputation. Without brand recognition to put behind your name, you may have a harder time securing customers than some of your more established counterparts.

Determine Your Own Territory

Have you always wanted to have your business be closer to home? Perhaps you’re considering starting your own business as a way of being closer to family. That’s why your location and territory is another important consideration when comparing franchising vs own business.

When franchising, territories are often protected to prevent competition between fellow franchisees. Through territory protection, a franchisor ensures how much business an area can sustain and prevents too many franchisees from oversaturating the market.

While this can be helpful from a business standpoint, it can also mean not being able to start your business exactly where you want. If another franchisee has already laid claim to the territory in your area, you may not get to start your business in the same town.

As an independent business owner, you aren’t subject to any territory agreements. That means you’re free to set up your business wherever you’d like! Of course, this may mean opening yourself to more competition.

Advantages of Starting Your Own Franchise

For many entrepreneurs, one of the most popular options when it comes to starting their own business comes in partnering with an existing franchise. Franchising has all kinds of benefits for people looking to take charge of their careers by offering the guidance and support you need to start on your path to success. There are also some disadvantages for more free-spirited entrepreneurs. Find out the advantages of franchising vs own business and what it means for you.

Enjoy the Recognition of an Established Brand

Among the first, and most obvious, benefits of partnering with a franchise is the immediate brand recognition you receive. By partnering with an established brand, you’re also buying a name and reputation, carefully developed over the course of years.

And you’re buying more than just a name when you start your franchise. You’re also aligning yourself with the core values and principles of your franchisor. It is important to make sure your franchise agrees with your own values, and that you are working with a brand where you can be both proud and happy in your business.

Brand recognition isn’t something that comes easy. Partnering with the right brand can open a lot of doors for your business. Starting a franchise can be a great way to give yourself a serious head start.

Work With a Proven System

In addition to the brand recognition that comes with starting a franchise is the advantage of having a proven system to work within. A big part of franchising vs own business is that you’re signing on with a system with a proven track record. When you purchase a franchise, you are purchasing the right to take advantage of their proven success.

Some people thrive in established systems, while others may find them restrictive or stifling. Ask yourself if you do well following a system or if you’re the type of person who would prefer to go their own way.

Corporate Support and Training

The saying goes that if you want to go fast, go it alone, but if you want to go far, go together. This is just as true in business as it is in life. When you start a franchise, your success reflects the success of your franchisor. It’s in your franchisor’s best interest for you to succeed, which is why your franchisor provides you with ample franchisee support to help you get there.

Franchise support can take many forms for your business. It often begins with extensive training to ensure you understand the system and maintain the high standards you need for sustained success. In addition to training, franchisors also provide marketing and sales support to help you build a client base, as well as the tech support you need to serve them well.

If you decide to go the startup route, you’ll be on your own with no one to help show you the ropes. It’s important to consider your own experience and determine if you’re prepared to handle any questions that may arise.

Protected Territories Prevent Unwanted Competition

The keyword you want to remember when it comes to a protected territory is “protected.” This protection is just as much for you as it is for other franchisees. Territory protection is actually for the benefit of the franchisee. A franchisor has carefully analyzed a location, its size, and its potential customer base, and has carefully determined the optimal number of franchisees each location can support.

It isn’t helpful for either you or the franchise if all the franchisees are competing with each other and stepping on each other’s toes. By offering territory protection, your franchise helps safeguard the future of your business and prevents unnecessary competition that could hold you back.

See How to Find Success in Starting Your Business

Hopefully, you’re now a bit better acquainted with some of the advantages and disadvantages of franchising vs own business. Starting a business is an enormous undertaking that needs to be taken seriously and considered carefully. Do your research and weigh the pros and cons to determine the path that is right for you. Learn how you can get started with your supply chain consulting franchise when you contact Nexterus today!

Let us show you how!

Interested in finding out more about the Nexterus supply chain services franchise and our qualification requirements? Visit our Frequently Asked Questions page, request more information, or contact us at 717-227-5617 or

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