There is sometimes a little confusion regarding the difference between a franchise and a business opportunity, especially if it is a business opportunity and they call themselves a franchise.
Let’s clear this up because both franchise and business opportunities are quite distinct from one another.
Both these formats give you the opportunity to go into business for yourself without having to reinvent the wheel. To start a business from scratch is not for the faint-hearted as many hard and often expensive lessons are learned the hard way over a long period of time.
Both these opportunities may be the answer to the desires you have of owning your own business. However, before deciding which route to follow, let’s look at which one will be the best fit for you.
A franchise is an agreement where the franchise owner (the franchisor) grants the investor (the franchisee) the right to use its trade name, trademarks as well as certain business systems and processes, providing support to produce and market a good or service for a fee, according to certain specifications in a specific area for a defined period of time.
By owning a franchise, you are in business for yourself but not by yourself. By investing in a franchise, you must be prepared to abide by all the rules and regulations of the franchise which may sometimes stifle the spirits of an entrepreneur.
A business opportunity is much less structured than a franchise opportunity allowing you to run your business pretty much how you want to. This allows you to be innovative and make decisions for yourself. As there is no ongoing relationship or support by the seller after business operations are set up, few guidelines need to be adhered to.
So, which is the best fit for you?
If you want structure and ongoing support, a franchise may be right for you. However, if you want to run your business your way, and are willing to give up any ongoing business support, then a business opportunity may be a better choice.
Whichever option you believe is right for you, it is probably a smart choice rather than starting a business from scratch.
If you are considering franchising your business, why not contact us Franchise My Business to assist you quickly and cost effectively to enhance its success. We provide you with the complete package, including assisting you to recruit Franchisees through the SA Franchise Brands website and other media platforms that we utilise.
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