Should You Choose a Franchise or a Startup? Here’s the Scoop
If you’re considering owning your own business and finally becoming the entrepreneur you’ve always wanted to be, we want to be the first to say: we think that’s really cool. You’ve got an exciting journey ahead of you. We’re excited to share what we know as you research the benefits of owning a franchise business and compare them to the benefits of launching your own small business.
Like any business, owning an ice cream and Italian ice franchise looks very different than starting your own frozen dessert shop. But, even if you’re not looking to open an ice cream business, we can help you get a head-start on learning the differences between the two business models.
What Is a Franchise?
Franchising is a business model designed to facilitate brand growth by entrusting the brand to independent business owners. Through Franchise Agreement contracts and various fees, companies agree to allow franchise owners, or ‘franchisees,’ to use their brand, sell their product or service, access proven systems and tools and more.
Why Own a Franchise Business
In most cases, franchise opportunities provide entrepreneurs a business-in-a-box, or a ‘turnkey’ business that’s ready to be built and opened quickly and efficiently. It’s just missing one crucial ingredient: you. Franchised companies, or ‘franchisors,’ spend tens of thousands of dollars a year to find hardworking, self-motivated people like you to act as an extension of their brand as they grow in markets around the globe.
Accurate statistics are hard to come by, but leading outlets tend to agree that franchise businesses appear to have a higher rate of success than independent businesses. Given the benefits franchisees have access to in exchange for the costs and fees they pay, this would make sense. Not all franchisors are created equal, but franchisees can typically expect:
- A proven business concept and product/service
- Business, sales, operations and marketing training
- Experienced marketing strategy and collateral
- Initial and ongoing support in every facet of business
- A dedicated franchise business coach
- Ability to manage their day-to-day business and work schedule
- An established brand and customer base
With a franchise, you don’t have to worry about having the market’s next big idea and creating a business plan to capitalize on it. That work has already been done for you. You have the help of other people with experience operating the business and who know what works and what doesn’t. In some cases, like here at Jeremiah’s Italian Ice, even the franchisor relies on additional expertise in order to be the best they can be. That’s why we’ve partnered with, Pivotal Growth Partners to help us navigate our rapid growth and expansion.
Why Launch a Startup?
Even the largest and most successful franchises had to start somewhere. Launching a successful business takes an exciting and marketable idea, a solid base of funding, visionary leadership, comfort with risk and a whole lot of time. Because of the need for creative and innovative solutions, this approach to business isn’t for everyone.
When people launch their own business successfully, they can look forward to:
- Total creative freedom and control of the business and their role in it
- Potentially lower startup costs than a franchise
- The excitement of risk-taking
- Retaining 100% of the equity and keeping 100% of profits
Those who opt to start their own business regardless of the scale or scope of their goals are those who would prefer to pave their own way and make their own mistakes, instead of relying on the knowledge and experience of others. They’re people who flourish in a high-stakes environment and who want to control or personally delegate control over every aspect of their company, and who love the process of trial and error.
Now that you know more about what separates a franchise from a startup, you’re one step closer to becoming a business owner! If you’re shopping for low-cost franchise opportunities with a fast-growing frozen dessert franchise brand, look no further than Jeremiah’s Italian Ice! Check out why franchisees love owning their shops.