Franchising vs. STARTING YOUR OWN Business ALONE

Should You Open a Franchise or Independent Business?

There are a variety of reasons people choose to open a franchise over an independent business (sole proprietorship), and vice versa. The root of the differences between these options comes down to time, money, and risk level. Let’s take a deeper look at the key differences between franchising vs. owning your own business as a sole proprietor.

Pros and Cons of Starting Your Own Business from Scratch

Starting a business is a risky but exciting venture. While it can be deeply rewarding in the long run, many business owners must navigate sizable obstacles in the beginning. This trial-and-error period of a sole business owner includes:

  • Finding effective systems for management
  • Researching the market to develop a good business plan
  • Deciding on the best technology for running the office and business
  • Investing in marketing and branding resources
  • Building a customer base and reputation from scratch

While skilled and experienced business owners may be able to shorten the trial-and-error period, it often takes months to years to develop good systems. Many sole proprietors go out of business before this happens.

On the other hand, there are some benefits of running your business alone rather than franchising:

  • Full control of branding
  • Full control of service offerings and changes to the business model
  • No royalty payments or franchise fee

Connect with a Franchise Advisor Today.

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Owning Your Own Franchise vs. Your Own Business

So, should you choose a franchise or independent business? If you find an established, quality franchisor, running a franchise can be less difficult than running a business alone.

Though benefits can vary from franchise to franchise, these are some common advantages of choosing franchising vs. starting a business on your own:

  • Managed risk
  • Franchisor support such as financing plans and training
  • Resources for marketing, employee training, hiring, and more
  • Proprietary technologies for administrative tasks, appointment booking, and more
  • Built-in brand recognition—and even an existing customer base, if it’s a franchise resale
  • Buying power with preferred vendors
  • Better work-life balance potential, as business support can free up extra time

Owning Your Own Franchise with Neighborly

If you’re interested in the home service industry, consider investing in one of the Neighborly franchise brands. You access an expansive network of people who care about your success. Support for Neighborly franchisees includes:

To learn more about Neighborly franchise opportunities, contact us online or call (888) 387-8018 today.

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