So should you be an entrepreneur or a frantrepreneur?

It depends. It does, and often, strong-willed entrepreneurs don’t make good franchise owners. Franchises have processes, repeatable, scalable processes that have gotten them to where they are today. 

They want people who will follow those processes. Not come up with their ideas outside of scope. 

Pros of Franchising 

While no recent studies extensively report on the franchise industry’s success rate, FranNet completed a survey of 1,260 North American franchises that FranNet helped open between 2006 and 2010. The results confirmed the long-held belief that business owners are more likely to succeed when they join a franchise network. 

The study found the following: 

• 91.2% of the franchises were still in business after two years 
• 85% of the franchises remained open after five years 

Compared to traditional small businesses – Small businesses have a high failure rate, with 18% failing in their first year, 45% in their first five years, and 65% in their first 10 years. Only 25% of new businesses survive 15 years or more. More here. 

Furthermore –

1. Brand recognition
2. Helping Hand
3. Long Term Return
4. Lower failure rate
   
5. Built-in customer base
   

Cons of Franchising

Expensive.

Expensive. 

Expensive.

Franchise fee, royalties.

Lack of control. Lack of control means you cannot do whatever you want with the business.

What are you going to do?

Whether deciding upon franchising, starting your own business, or nothing, we’d happily process it with you. 

If you are curious about 4 really good options to pursue franchising with, try our AI solution.