Should I Buy a Franchise or Build My Own Business?

Congratulations! You’ve made the bold decision to become a business owner.

Now, you’ll need to determine if you want to go it alone or buy a franchise in the UK. There are pros and cons of both entrepreneurial options, so you must identify what your top priorities are. Below we explore the top considerations of launching a franchise vs startup. 

Franchise vs Startup

Here’s a glance at the top benefits of each business model, with detailed explanations below. The top cons are mixed in for you to compare and check for alignment with your priorities and objectives.  

Franchise Benefits 

• Reduced risk
• Proven business model
• Built-in brand recognition
• Built-in business essentials
• Hassle-free new product development 

Startup Benefits 

• Full Autonomy
• Creative freedom
• Potentially lower startup costs
• Self-empowerment
• Ease of sale

Top 5 Reasons to Buy a Franchise Business

Buying a franchise may be more attractive if you are a first-time business owner or you don’t have any managerial or operational experience. However, franchising is also a top option for tenured entrepreneurs looking to rapidly launch, grow, and turn a profit. Your franchise partner wants to see you succeed and they’re there to help.  

1. Reduced Risk: Buying into a franchise may require a larger upfront investment, but it’s an investment that will likely pay itself back. You don’t know what you don’t know, and the time and money it takes to learn may cost more. Sometimes the cost of your learning curve is more than a startup can sustain. 
2. Proven Business Model: A franchise provides a step-by-step roadmap and a turnkey business plan. It eliminates the guesswork and the trial-and-error process. To ensure you’re on track, you’re provided with a franchise consultant and initial training. Once you launch, you’ll be part of a region or district that serves as a community you can network with. When you succeed, your franchise partner succeeds, so you’re provided with tools, resources, and ongoing training and support.   
3. Built-In Brand Recognition: When you buy a franchise business, you’ll have brand recognition from day 1. Yes, you’ll need to build your reputation in your service area, but you’re buying into a brand that’s already established trust and loyalty. To ensure compliance, you must learn your franchisor’s brand values, systems, operations, and product and service quality standards. 
4. Built-In Business Essentials: You may invest in local area marketing, but you’ll benefit from your franchisor’s global, nationwide, and regional marketing campaigns. As a franchisee, your core vendors are already sourced, providing you with cost-efficient group purchasing power. If you need to procure financing, banks often view franchises as lower risk than independent business owners.  
5. New Product Development: Your franchisor will invest in ongoing research and development (R&D). R&D may include discontinuing or expanding current products and services or creating new products to meet evolving client needs. When a new product or service is ready to launch, you’re provided with training and tools to ensure a smooth launch. There will also be a nationwide marketing campaign.

Top 5 Reasons to Start Your Own Business

One of the top reasons to start your own business is that you have the autonomy to make every decision yourself—or with your team. This level of freedom can be overwhelming to some business owners, but others thrive in the challenge of figuring it out. You’re likely to experience more roadblocks without the guidance of a franchise partner, but there’s always a lesson to be learned. Even as an independent business owner, you never have to go it completely alone—as you can hire an ActionCOACH business coach! 

1. Full Autonomy: When you buy a franchise, you have less control over your business model and day-to-day decisions. As an independent business owner, you have full control. If you’re tenured in your industry or have managerial or entrepreneurial experience, you may already be familiar with creating and implementing workflows, systems, and procedures. You may also enjoy the freedom to create and refine your product and service range. 
2. Creative Freedom: If you have a clear vision of your brand identity, operational standards, and desired product and service range, building your own business may be a better fit. When you buy a franchise, even foundational decisions such as where to open your business, operating hours, and (potentially) the dress code are set forth by the franchisor. You’ll also have the freedom to discontinue, expand, research, test, and launch new products and services as you see fit. Be mindful that R&D is an expense.
3. Financial Benefits: It varies by industry, but your startup costs may be lower as an independent operator, as you don’t have to pay an initial franchise fee. Franchisees must also pay a percentage of their gross profits to their franchise partner. As the sole operator, every dollar you make can be reinvested in growing your new business. However, your time to profitability may be faster with the brand recognition and support of a franchise partnership.
4. Self-Empowerment: You’re certain to feel a sense of accomplishment when you buy a franchise in the UK. However, you may feel a deeper sense of pride, connection, and satisfaction in bringing your vision to life as an independent business owner. 
5. Ease of Sale: If you decide to exit your business for any reason, all you must do is sell it. You’re sure to vet your buyer to ensure your brand is preserved and your team is in good hands—but the choice is yours. When selling a franchise, the process is more complex, as you must obtain franchise approval. You may need to meet other compliance requirements, which may include paying a franchise transfer fee. 

How About a Franchise That Supports Fellow Business Owners?

ActionCOACH doesn’t just provide coaching services, we offer franchising opportunities! When you franchise with ActionCOACH, it can transform your future, and the future of the clients you serve. We’re here to answer all your questions to ensure that we’re aligned with your vision and goals. 

You can learn more about our franchising model with a no-pressure 20 to 30 minute discovery call. Book your spot to speak with one of our advisors today!