Franchise Or Business Opportunity: The Difference
What's the difference between a franchise opportunity and a business opportunity? A business opportunity simply gets you started in a business. Once you start your business, you are pretty much on your own. In contrast, franchise opportunities imply a tight partnership with the franchising company, a partnership that will exist as long as you are in business. There are other subtle differences between franchise opportunities and business opportunities, as we explain below.
Aspiring small business owners have a world of opportunities at their disposal.
Many choose to start their business from scratch while others choose to take advantage of business opportunities that have already shown themselves capable of turning a profit. Entrepreneurs who fall into this second category have a couple of options at their disposal: Franchises or "business opportunities".
While franchises and business opportunities may look similar, in fact they are very different. Knowing the difference between the two is crucial and can make the difference between a successful business venture and an entrepreneurial disaster.
What is a franchise?
A franchise is defined as a business that is authorized to sell or distribute a company's goods or services in a particular geographic area. When you open a franchise, you own the business and its infrastructure along with the right to use the franchising company's brand, trademarks, and promotional materials. In most cases you also own the exclusive rights to sell the product in your franchise area.
In return for these rights, the franchisee (you) agree to pay an upfront fee to the franchising company. This fee can is usually significant and covers a variety services that are provided to you by the franchising company. There is often also an ongoing franchise fee that is paid on a monthly, quarterly, or annual basis.
What is a business opportunity?
A business opportunity is not nearly as structured or clearly defined as a franchise. Generally speaking, a business opportunity is a pre-packaged array of goods or services that allows the buyer to start a business with the expectation of an existing market, a promotional plan, and profitability.
What are the advantages & disadvantages of a business opportunity?
An advantage of business opportunities is that they are less restrictive to operate than a franchise. They typically cost less to purchase and rarely require ongoing franchise or royalty fees. Also, business opportunities don't tend to limit the business owner's selling area or require strict operational standards.
On the downside, however, business opportunities don't provide the buyer with trademark rights or provide ongoing assistance to the franchisee. Essentially, after you buy into the business opportunity you are cut loose to succeed or fail on your own.
What are the advantages & disadvantages of a franchise?
Without a doubt, franchises are more costly than business opportunities in both the upfront fee and the ongoing royalties. However, in exchange the franchisee receives valuable services such as employee training, promotional benefits, trademark rights, etc. This can be a huge benefit, especially for entrepreneurs who are entering the world of small business for the very first time.
The geographic and operational restrictions placed on franchisees can also be viewed from a value-added perspective. Although your franchise may be limited to a certain geographic area, you will be the exclusive seller of your goods and services within that area - a guarantee that business opportunities cannot offer. Likewise, the operational standards required by many franchises provide the franchise owner with a proven and established system of quality control. You would likely have implemented similar standards on your own. With a franchise, the work has already been done for you.
Want to Learn about Franchise Opportunities?
Browse tons of franchise opportunities in the Gaebler Ventures franchise directory:
Gaebler Ventures Franchise Directory Categories - Alphabetical Listings
- # - How to Find a Good Franchising Opportunity
- A - Franchises for Sale
- B - Directory of Franchises
- C - How to Find Franchise Business Opportunities
- D - Franchising Information
- E - Finding a Franchise
- F - Franchise Directory
- G - How to Buy a Franchise
- H - Owning a Franchise
- I - How to Own a Franchise
- J - How to Choose a Franchise
- K - What's the Best Franchise for You?
- L - Franchise Businesses
- M - Learn About Franchises
- N - Franchise Companies
- O - Want to Start a Franchise Business?
- P - Franchise Info at Your Fingertips
- Q - How Do I Buy a Franchise?
- R - How Much Do Franchises Cost?
- S - Start a New Franchise Business
- T - Franchising Process
- U - Franchise Lists
- V - Franchising Lists
- W - Franchise for Sale
- X - Purchasing a Franchise
- Y - Need to Find Franchising Info?
- Z - Learn about Franchising
Gaebler Ventures Franchise Directory Categories - By Franchise Type
- Accounting Franchises
- Apparel Franchises
- Asian Restaurant Franchises
- ATM Franchises
- Auto Parts and Tools Franchises
- Auto Rental Franchises
- Auto Repair Franchises
- Auto Sales Franchises
- Automotive Services Franchises
- B2B Franchises
- Baby Franchises
- Bagel Franchises
- Bakery Franchises
- Bath Remodeling Franchises
- Blind Repair and Sales Franchises
- Bookstore Franchises
- Business Services Franchises
- Candy and Chocolate Franchises
- Car Wash Franchises
- Carpet Care Franchises
- Carpet Retail Franchises
- Cartridge Recycling Franchises
- Cell Phone Franchises
- Child Care Franchises
- Child Education and Tutoring Franchises
- Child Entertainment Franchises
- Child Photos and Portraits Franchises
- Child Safety Franchises
- Children Arts Programs Franchises
- Children's Fitness Franchises
- Children's Franchises
- Cleaning and Maintenance Franchises
- Closet Design and Construction Franchises
- Coffee Shop Franchises
- Construction Franchises
- Consulting Franchises
- Convenience Store Franchises
- Dating Service Franchises
- Deli Restaurant Franchises
- Dollar Store Franchises
- Donut Shop Franchises
- Dry Cleaning & Laundry Franchises
- eBay Franchises
- Embroidery Franchises
- Employment and Staffing Franchises
- Environmental Testing Franchises
- Family Restaurant Franchises
- Fast Food Franchises
- Financial Services Franchises
- Fitness Franchises
- Flooring Franchises
- Florist Franchises
- Food and Drink Franchises
- Framing Store Franchises
- Franchises that Serve Liquor
- Frozen Yogurt Franchises
- Gift Items Franchises
- Golf Franchises
- Hair Styling Franchises
- Handyman Services Franchises
- Hardware Store Franchises
- Health and Beauty Franchises
- Health and Diet Franchises
- Health Franchises
- Healthcare Franchises
- Healthcare Services Franchises
- Healthy Alternative Foods Franchises
- Home Décor Franchises
- Home Furnishings Franchises
- Home Inspection Franchises
- Home Repair Franchises
- Home Services Franchises
- Hotel and Motel Franchises
- Ice Cream Franchises
- Insurance Franchises
- Interior Environment Franchises
- IT Franchises
- IT Training Franchises
- Juice Bar Franchises / Smoothie Franchises
- Kid Friendly Franchises
- Kitchen Design Franchises
- Landscaping Franchises
- Leisure and Entertainment Franchises
- Mail and Shipping Services Franchises
- Marketing, Sales and Advertising Franchises
- Meal Preparation Franchises
- Mexican Restaurant Franchises
- Miscellaneous Franchises
- Modeling Franchises
- Moving Franchises
- Party Supply Franchises
- Payday Loan Franchises
- Payroll Service Franchises
- Personal Services Franchises
- Pest Control Franchises
- Pet Franchises
- Pizza Franchises
- Print and Sign Franchises
- Real Estate Franchises
- Rental Franchises
- Restaurant Franchises
- Restaurant Services Franchises
- Retail Franchises
- Seafood Restaurant Franchises
- Security Franchises
- Senior Care Franchises
- Soccer Franchises
- Specialty Foods Franchises
- Sports Franchises
- Sports Restaurant Franchises
- Tanning Franchises
- Tax Preparation Franchises
- Telecommunications Franchises
- Textile Repair Franchises
- Training and Education Franchises
- Travel and Leisure Franchises
- Vending Franchises
- Video and DVD Rental Franchises
- Video and Photography Franchises
- Wedding Franchises
- Wine Franchises
Our Directory of Franchise Opportunities now includes over 1,400 franchise opportunities. If we're missing a franchise, please let us know.
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