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One of the proven ways to manage your life and earn is by starting your own business. For many of us, the perks of entrepreneurship are hard to resist. After numerous sessions of brainstorming and re-reinventing the possibilities, a day comes when you have an idea and ready to take the big plunge!

Now when you are confident enough to take a step forward, the big question which comes to everyone’s mind is the type of business you want to be in. Specifically, you will need to decide whether to start an independent business or a franchise. For many ‘to be entrepreneurs’ this is a very tricky situation and there is no straight or simple answer. Evaluating the factors, discussion with your family, assessing the realities and getting an idea of the pros and cons of the 2 approaches is possibly the best way out. The key difference in franchise vs own business is safety/support and flexibility/independence. Since there are countless business models present today, this article specifically talks about a ‘quick restaurant business model’ and attempts to figure out what’s the difference between a franchise and owning a business along with their features and advantages of the both which can assist you to choose the best business model for you.

Franchise business

Following this approach, entrepreneurs acquire the rights to open and run a location for a brand or a larger company. There is a contractual agreement with the franchisor and a franchise, wherein the franchise is the operator of the location and

The franchisor makes the decision about the product lines and other variables.

An example would be McDonald’s or KFC.

Independent Business

As the name suggests,

It’s mostly a sole proprietorship business wherein the owner owns the entire business, right from inception to daily operations and taking business decisions.

Here the risk factor along with profit margins is higher if compared with a franchise business.

Factors Affecting your Decision


For an entrepreneur, overcoming the initial financial hiccups is the biggest challenge and hence it affects your decision for acquiring the type of business.

In a franchise business, though the upfront investment is low as compared to an independent business, in the later stages obliging the requirements of the franchisor can be costly. Franchisor holds the key relating to further expansions and re-branding of the business.

The operating cost along with investments is a bit higher in an independent ownership; however, an owner has the liberty to plan the investment decisions depending upon the current financial condition.

Brand Value

Starting a franchise business under a renowned brand can be beneficial and helpful in terms of creating a market and save the cost of advertisements and promotions which an independent business has to incur during the initial days of the business. On the flip side, by any chance,

If the franchise does anything which results in spreading negative publicity, it can harm the overall business, and in the worst case scenario, ruin the business as well.

Independent operators have to create their own brand value by the virtue of the quality of food and delivering a seamless customer service and creating a friendly atmosphere around the place.

Business Model

In terms of opening a restaurant business, a franchise model has some advantages over the independent approach.

The assistance you get from the franchisor for selecting the place, setting up the ambiance, training, and support along with the recognition gives you a perfect launch pad to start your journey.

On the other hand, traditional business has the freedom to get a perfect site, change a strategy if they find it’s not appealing to the customers, and have the liberty to modify their services according to the changing needs and preference of their customers. Therefore, if a franchise has the peace of mind, an independent business has the power to operate freely.


An individual’s experience in terms of managing the business and culinary aspect of the food service industry plays a pivotal role in deciding the nature of the business.

In a franchise business, the level of expertise required is minimum as here you just have to manage the daily operations as designed by the franchisor. The choice of food items, recipe, everything is fixed and hence there’s no scope for adding your own input. For managing an independent ownership, it’s advisable to have a decent idea of the foodservice industry. By having a significant knowledge and experience, you will feel more comfortable with being in charge of creating and executing your business plans.


Innovations are tough for both the franchise and an independent business, but for different reasons.

In a chain business, the scope of innovation is very limited and is only possible if the franchisor is doing it from his end.

For independents, the biggest hurdle is cost as performing market research and revamping accordingly involves a lot of money. On the positive side, here you are free to be creative and think out of the box! You can experiment with introducing new recipes or change the look and feel of the dining on a temporary basis.

Few advantages of owning your own company

  • No salary constraint
  • Enjoy what you like to do
  • Leader

Key advantages of a franchise

  • A built-in customer base
  • Brand recognition
  • Minimal risk
  • support from the franchisor

Irrespective of the approach, passion, and enthusiasm are key components in steering a business. If you prefer stability, security, and benefits of a brand, a franchise is a right choice. On the other side, if you have the power to control the daily operations and can take decisions on your own, going for an independent ownership seems the perfect choice for you.

To read more articles related to this topic click here5 Most Effective Ways to Manage your Team | YRC, 05 Most Effective Ways to Make your Business Plan | YRC, Now Investors can Invest in Bollywood Through Franchising | YRC, 5 Ways to Organize SME Businesses | YRC6 Effective Ways to Run your Business Successfully | YRC.

YRC is an “Expert Service Division” of Mind-A-Mend Consultancy Pvt. Ltd.