Purchasing a Franchise vs. Starting Your Own Business

Owning your own business is a very attractive option. You are your own boss, with the ability to make your own schedule, and the power to be totally in charge of your future. There are two main avenues to consider if this is your dream: purchasing a franchise, or starting your own business. There are benefits and drawbacks to each, and successful business owners make informed decisions before opting for one or the other. Here are some of the pros and cons.

Purchasing a Franchise vs. Starting Your Own Business

Purchasing a Franchise vs. Starting Your Own Business

Here are the pros and cons of business-ownership or buying into a franchise. Your should weight both sides carefully before making a decision.
Mesa, Arizona

Starting Your Own Business

  • Nobody is your boss but you: No ifs, ands, or buts. You do not answer to anyone. You can do whatever you want with your business.
  • Full Control: you control set up, business model, design, and anything else you can think of. You are building the business from the ground up, and you get a say in every step. Buying, purchasing, payroll, benefits, employees, you get to have complete control over everything and anything.
  • Customizable marketing: This is a big plus if you are a marketing wiz. You will have the chance to create and implement your own marketing plan. Any mistakes you make are yours to suffer through, but mistakes can be learned from.
  • Set your own prices and overhead: Bosses get to the set the prices, and you are the boss. You get to decide the balance of price and overhead to maximize your profit. Franchise owners have to follow the regulations of the franchisor when it comes to pricing and regulations.

Buying a Franchise

  • Higher chance of success: Since the steps to success have already been laid out and tried, franchises have a better chance to succeed.
  • Easier to get financed: Since well-known franchises have already proven reliable, banks are far more likely to finance a franchise than a start-up. On the other hand, banks may be hesitant to finance the significant up-front costs of a franchise.
  • Extra support: In exchange for fees, you receive support, purchasing power, legal help, developmental research, and everything else that comes with starting a business, including a tried and true business model without the hassle of trying to figure it out by yourself.
  • Recognizable brand: One of the biggest benefits of buying a franchise is brand recognition. You get loyal customers and business pricing on supplies to go with the easy to recognize name.
  • No or little marketing: For those who would rather not deal with marketing and promoting, this is a big boon. Most of the time, the parent company deals with all of the advertising and marketing, which benefits each location.
  • Less chance of mistakes: Starting a business is a process of trial and error, and you are going to make mistakes, possibly large and costly ones. In a franchise, the franchisor has already gone through the mistakes, and can give you a proven business model to succeed.
  • Too much control by Franchisor: In a franchise system, the franchisor is in control of many aspects of the franchise system. While this may prove positive as it allows franchisees to rely on the experience of franchisor to avoid common mistakes made by new business owners, it can become a burden when the control of franchisor is felt so heavily that it is hindering the growth of franchisee’s business.


Going into business by yourself gives you personal and financial freedom. It is your decision whether to start your own business or to buy into a ready-made franchise. Both decisions have pros and cons, so make sure you ask a lot of questions and learn as much as you can to ensure that you make the decision that is right for you. A business attorney experienced in franchising can provide invaluable insight in reaching your decision. Denton Peterson PC is here to help if you have any questions about starting up your own business or franchise. Contact us today to learn more.

Brad Denton, Arizona Business lawyer Approved By:

Brad DentonDenton Peterson, PC

1930 N Arboleda #200
Mesa, AZ 85213

Office: 480-325-9900
Email: [email protected]
Website: dentonpeterson.com