Recently, Franchise Insights conducted a survey of aspiring business owners regarding their preference in business investment.  They asked participants whether they preferred to buy a franchise or purchase an existing independent business.  

Over the last 6 months, the preference for purchasing a franchise outgrew investing in an existing business purchase significantly.  By the numbers, 38.5% indicated interest in the franchise purchase option, only 20.3% indicated an interest in buying an existing business.  So, why is that?

There are variety of factors at play when it comes to the big decision, and reasons in this survey were not solicited, but we like to think it is because of what we refer to as the “franchise advantage.”  While we won’t dismiss the fact there are pros and cons for each, here we review why franchising has the edge.

Built-in Network of Support

Deciding to be your own boss is a life-altering decision – especially if this is your first time.  Not having the comforts of a regular paycheck while supporting a family can feel overwhelming.  Security plays a big role in why people stay with their corporate jobs, even though they are just plain miserable.

When it comes to franchising, you can have the best of both worlds.  When purchasing an independent business, you and only you, are responsible for whether this business stays afloat.  That isn’t necessarily the case with a franchise business.  When you invest in a franchise, you are investing in a proven system.  This system is backed by ongoing support as well as a model that has been replicated.

Fresh Start Included

Another key advantage to buying a franchise is getting the perks of starting brand new without the initial start up process.  New franchisees have the advantage of beginning their business with a clean slate – the reputation and recognition of your individual franchise in your community is entirely what you decide to make it.

You will not have this luxury if you decide to purchase an existing business.  Unfortunately, there is no way to know for certain the true reputation of the business you are buying, the condition of the equipment, the current relationship with the employees, and any other unknowns until after the sale has completed.

Less Risk, With A Great Reward

Ultimately franchising succeeds only if the individual franchisees are successful.  Thus, a franchise system is built to enable the new business owner to succeed.  The system has been tested time and time again and the presented franchise package is structured around what does and does not work.

An existing business, however, does not have the history behind it.  While it may look successful now, you have no way of knowing whether it is solely based on what previous ownership was doing, and whether it is sustainable for the future.

Owning a Franchise: A Blueprint for Success

In summary, aligning with a franchise can allow you to tap into a more powerful, established, and connected organization that can provide all the right tools to grow a business a lot faster with a lot less risk.  While existing businesses have some advantages, the power of the franchise network can not be understated when it comes to providing a system built on enabling your success.

Are you considering owning your own business or franchise and not sure where to start? Evergreen Franchise Advisors, LLC provides free franchise consulting services to entrepreneurs just like you.