What Is the Difference Between a Franchise Opportunity and a Business Opportunity

When you invest in a franchise opportunity you pay or have paid for the right to sell a particular franchise’s products or offer that particular franchise’s services. For this, you get permission to use a particular brand name. And, the more recognizable a brand name is, the more likely consumer response will be.

You also get a “jump start” on starting your business or operation because a lot of the “up front” work has been or will be done for you. The equipment you need to get started will either be supplied to you or you will be told where (and possibly from whom) to purchase it, possibly at a reduced cost. Further, you will be given any training you may need.Additionally, you are not alone. You can always ask the franchisor for assistance, as well as other franchisees. This can be particularly helpful if you are a beginning franchise business owner.

You also have some regulations and legal guidelines in place for your benefit. Among these is the Franchise Disclosure Docmument (FDD). This is a document that a franchiser is required to show you before you ever sign anything or hand over the franchise fee.

It gives information on such things as franchise fees, estimates of expenses, and the franchise’s history. The most important thing it provides, however, is the names of those people who currently operate franchises and who did so in the past fiscal year but have since ceased to do so.

However, with a franchise opportunity, while you are in some ways your own boss, in other ways you are not. You must adhere to the policies and regulations expected of everyone who operates a franchise. Further, a portion of your profits also goes back to the franchiser This includes “royalty” fees for being allowed to use the brand name.

On the other hand, that is one of the main differences between a franchise opportunity and a business opportunity. Once you buy a business opportunity, it is yours. The person who sold it to you is no longer connected with it in any way. Because of this, you have a lot of leeway in how you run your business. This includes choosing your hours, determining which products you do or don’t want to carry, and other things.

Unlike a franchise opportunity, however, you don’t have a support system, such as a franchise owner does. You’re basically on your own, unless you know another business opportunity investor who can help you, provide advice, or mentor you.You may also have to create your own client or customer base, especially if there was no previous one in place when you invested in the business opportunity. And, of course, your income depends on how well your business does.