Thursday, November 3, 2011

Franchise vs Independent



My answer would be based on my financial capability. If everything else constant, and I have the financial luxury to choose between an independent or franchise, I would buy a franchised business. The risk is a lot lower than with going with an independent business. The money you pay to an franchise is worth the strong branding you get in return. I have met many franchisees, who end up owning multiple units, for example - subway, dunkin donuts, hotel chains, etc. On the flip side, I rarely have met people create their own branding on a large scale. The other positive is visibility and marketing - an franchise is nationally recognized - and you do not have to rely on word of mouth locally to attract customers, like you would if you are running an independent business. I would definitely become a franchisee.

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