An independent setup or a franchise business?

[Jonathon]

Which one is a better option for a new business investor: an independent setup or a franchise business? According to my opinion, the second option makes for a better alternative. Undoubtedly a beneficial opening for new entrepreneurs, franchise business only demands for less financial funds but also allows the candidate to use an established brand reputation. Moreover, many recognized brands provide their investors with complete design and store operational training.
One of my colleagues who started off with a unique franchise business of saladbar Green is Better has reaped good profit in last few months. People becoming conscious of their health once again, healthy eating is definitely back with a bang.

[Patrick Maslyn]

It depends on the business. If you have a great idea and the ability to make it happen on your own, go independent ... and then sell your own franchises. The downsides to being a franchisee are that you have higher overhead (royalties) and less control over the business (need to comply with the system). I wouldn't compare the business models -- I'd compare the businesses.

[Jonathon]

Thank you Patrick for your valuable feedback.You are absolutely right but a person who is going to start a new business will think twice about it.Because he has built the same infrastructure like that business,investing a bulk of money and have some money to make a stand on it.But if he decide to go independently,there is a high risk factor always hanging on his head.It is really complicated to think.

[dr.ayurveda]

As I was searching online jobs for my niece, I found this website www.PaisaFree.com. They seem to be genuine and different from current scams. Shall I proceed? orrr?? Someone help me please!!

Also if this business is genuine, Shall I ask for a partnership? Will it worth?

[applied]

You're making a basic choice:

1. less risk / less reward <--franchise
2. more risk/more reward <--owner

IMO, your first business ever should be a franchise because of the high failure rates.

[frank.moses06]

hi friends

ur post are great

[FREE100KSECRET]

Good question,

One which most of us who wanted to start a business have to decide. I went through the process, checked our tons of businesses, franchises and non franchises until I found what I was looking for. That is the key, choosing a business based on what you are looking for, not just because it is the least costly franchise as example.

What I was recently researching is the movie rental KIOSK franchise having seen how successful RedBox was in local grocery store. With a BlockBuster next door, when they put in this KIOSK it put the hurt on BlockBuster and put them into bankruptcy. Simply put, lower prices sell, and because these KIOSKs were always next to a BlockBuster, it was only a matter of time it would hurt the brick and mortar stores.

I use to own a video rental retail rental store back in the day and it was extremely profitable because there were no big box rental stores, but like every market, it changes, and when the big boys see an opportunity, they will jump on it. Look at NetFlix, it became a huge success without the overhead burden of BlockBuster model. By the time BlockBuster figured it out, it was too late, the direct to home mail concept put the hurt on BlockBuster and RedBox forced it into bankruptcy and hundreds of locations were closed, including my local store.

This got me thinking, is there a market for a movie rental KIOSK to fill the void, so I researched RedBox and found out it was not a franchise, they would set up deals with Walmart and grocery store chains, but none to be found in local convenience stores which was my target. In my research, I found a new company which is combining the best alternative of all. No franchise fees, in fact, it was free to start, and they give you the option to earn your own KIOSKs to place wherever you want, you own the machines, and you set the terms with business locations. Needless to say, this got my attention.

I follow economic and marketing trends very closely, and in a recession, what are people most interested in? Saving money, saving time, convenience, and they still want entertainment, and movies are one of the hottest of all venues for people on a tight budget. Heck, if you go to the local movie theatre these days the average family will have to drop nearly $30.00, never mind the cost of gas. Cable and satellite movie rentals are $6.99 each, NetFlix and BlockBuster are $9.00 to $10.00 per month and RedBox just raised its prices to $1.20 each movie, so Free-FlixsNow made more and more sense the more data I collected.

Simply put, do you rent movies? Everyone knows someone that does, so starting with the free affiliate position made sense, and as I work it, build a subaffiliate team, I will earn my own KIOSKs and already have several high traffic locations ready to go. Wth streaming video growing, this is another option offered, so Free-FlixsNow has all the distribution channels covered. Best part of all is the low price, lowest in the industry at only $2.08 per month, no contract, no long term agreements, this is a no brainer as I see it, what do you think?

Good luck,

[LifeChanger]

I looked at hundreds of business models over the years........including Franchising..........found them to be all run of the mill, pizza shops, burger shacks, printing businesses, etc..........huge start up capital needed, territorial restrictions, much risk, mortgage your life away, then you have a 60 hour work week and the stress......plus you still need a building, employees, all the tools and machines and you have the risk of losing your butt. So...........I tell all of you here.........do your homework...........I did. A real business model that mirrors the power and systemization of Franchising but has none of those negatives DOES exist. The most powerful business model I have ever come across. Ill be happy to share some info..........private message me.

[Cox SBN Editor]

Joel Libava has some good, practical advice about owning a franchise. He's one of our newest columnists, and he also has his own blog, website, book, etc.

[PatrickP]

I don't know which is better as I have never had a franchise.

I have looked into a number of different franchises but have never gotten on board with one.

I am utterly STUNNED at that amount of money required and the net worth required for a franchise such as Panara Bread.

Especially when you take into consideration the considerably low amount of return on investment.

From what I have seen you need a net worth north of 5 million dollars and to invest at least a million dollars.

All that to earn 'only' $300,00 a year. To me that is amazingly horrible.

Obviously I do not share the same thoughts of hundreds/thousands of others who happily hand over hundreds of thousands of dollars to get on board with a franchise.

But for me to add insult to injury is to have an area supervisor come into YOUR company and tell you DO this or do NOT do that. Yikes that would just put me over the edge.