How does a franchise differ from starting my own business?

There are three ways to go into business. You can start your own business, buy an existing one or become part of a franchise.

If you go out on your own with an existing or new business, you’ll need to not only supply goods and services, you’ll also have to be the finance manager, HR manager, marketing manager, tech guru, and admin person. Being a franchisee means that all these aspects are already set up, and there is a head office or other franchisees to call on for support. In addition an established brand can give the business a head-start and deliver loyal customers from the moment you open your doors. There tends to be less risk, so banks are more willing to provide finance.

On the other hand being part of a franchise means you are not as free to make your own decisions – being successful depends on following the system. If you’re the kind of person who likes to make their own rules, then franchising may not be for you.