Franchising Vs Independent Business

Which Path Should You Take: Open a Franchise or Independent Business?

There are a variety of reasons why people choose to open a franchise over an independent business, and vice versa. Most of the time, the decision comes down to three factors: time, money, and risk level.

Here’s deeper look at the key differences between owning a franchise and starting a business alone.

Pros and Cons of Starting Your Own Business from Scratch

Pros and Cons of Partnering with a Franchise

Starting a business is a risky but exciting venture, and there are several benefits and drawbacks.

The pros, or benefits of running your own business alone rather than franchising include:

  • Full control of branding
  • Full control of service offerings and changes to the business model
  • No royalty payments or franchise fee

Now the cons. While starting a business from scratch can be deeply rewarding in the long run, many business owners must navigate sizable obstacles in the beginning. This trial-and-error period for a sole business owner includes:

  • Finding effective systems for management
  • Researching the market to develop a good business plan
  • Deciding on the best technology for running the office and business
  • Investing in marketing and branding resources
  • Building a customer base and reputation from scratch

While skilled and experienced business owners may be able to shorten the trial-and-error period, it often takes months to years to develop good systems. Many sole proprietors go out of business before this happens.

Owning Your Own Franchise vs. Your Solo Business

If launching a business on your own without a network or support system sounds daunting, then consider franchise ownership with an established, quality franchisor.

Though benefits can vary from franchise to franchise, these are some common advantages of choosing franchising instead of starting a business all on your own:

  • Managed risk
  • Franchisor support such as financing plans and training
  • Resources for marketing, employee training, recruiting, and more
  • Proprietary technologies for administrative tasks, appointment booking, and more
  • Built-in brand recognition — and even an existing customer base if it’s an existing franchise location for sale
  • Buying power with preferred vendors
  • Better work-life balance potential, as business support can free up extra time

Owning Your Own Franchise with Refresh®

concept of fast business success.

If you’re interested in the home service industry, consider investing in one of the Refresh® franchise brands. You’ll have access to an expansive network of people who care about your success. Support for Refresh® brand franchise owners include:

  • Established systems
  • Advanced technologies
  • Widely recognized brand names
  • Continuous training and support
  • An existing network of support and mentoring
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What is Franchising

It’s a Relationship and an Opportunity

A franchise is a business model in which a company (the franchisor) gives other parties (franchisees) the right to use its trademark to sell goods or services according to its terms. (The legal contract for this arrangement is usually called a franchise agreement.)

The franchisee may benefit from the company’s established business systems, recognized brand, training programs, and other support. These benefits are typically given in exchange for an initial investment, a franchise fee, and a set percentage of sales revenue (royalties).

Franchise concept. Business, Technology, Internet and network concept.

A Win for Both Sides

The success of the franchise model comes down to one simple thing: an agreement between the franchisee or owner (that’s you) and the franchisor (that’s us). You agree to make an initial investment and pay regular fees, and we agree to share the benefits of our established brand and proven system with you.

The Mutual Benefits Of Franchising

Our Role

  • Established Business Model
  • Recognized Brand
  • Established Systems
  • Ongoing Training & Support

Your Role

  • Ownership & Operation
  • Technical or Business Expertise
  • Franchise Fees

What Franchising IS

  • An Investment: An opportunity for your money to grow through your own hard work.
  • An Established Business Model:Our franchise brand model has been proven hundreds of times nationwide.
  • Your Independent Business: Be in business for yourself without having to be by yourself.

What Franchising IS NOT

  • Employment: You own the business, you make the schedule, you run the show.
  • Out Of Reach: Lower-cost opportunities like many of the Refresh® brands make franchise ownership accessible.
  • A Guarantee Of Success: Success is determined by countless factors, but primarily depends on your leadership and work ethic.

Do you dream of starting your own business — or growing your existing one — but aren’t sure where to begin? By choosing the right franchise opportunity, you can set out on a new, more rewarding career path.

Franchise Examples

Think food chains like McDonald’s® fast food restaurants, fitness outfits like Anytime Fitness® centers, and home service opportunities within our Refresh® brands. These reputable companies are powered by the many business owners in the franchise system.

A franchise is a unique opportunity to grow a business — your individual business as well as the larger corporate business. It’s a relationship that varies from company to company, so if you want to join in, read up on the details of the franchise model, and engage with a franchisor that offers the right benefits. Check out the following resources for more information:

More Information

Business Ownership Made Easier

Franchising is designed to make business ownership more accessible because the initial investment of time, money, and effort are generally less than starting a business from scratch. With our our Refresh® brands you have a built in system from training and customer acquisition to marketing, customer service and billing.

The decision to become a franchise or an independent business owner all on your own is a personal one. Refresh®  provides the information to make the right move for your professional and personal goals.

Home Service Franchise Opportunities

When you find an opportunity and industry that really suits you, franchising can be rewarding in both the short and long term. If you’re interested in the home services industry — from apartment cleaning to painting to refinishing—connect with us at Refresh®. As a franchise business owner of one of our  award-winning brands, you’ll maintain independence and flexibility while having access to ongoing training and support.

Refresh is proud to give aspiring and existing business owners the chance to stand out in competitive industries and build the lives— and the legacies —they’ve always wanted.

Refresh Carpet Cleaning Franchise Refresh Janitorial Franchise

Refresh Painting Franchise Refresh Refinishing Franchise

 

Being your own boss

Research has also shown that people who work for themselves are often happier. As your own boss, you’re able to manage your own time, express yourself creatively, and make money doing what you love. But not everyone fits the mold. For some, being the boss can lead to isolation or an uncomfortable lack of structure.

You know yourself better than anyone, so take the time to consider the pros and cons of being the boss. If you decide that being your own boss is your next career step, then you have plenty of career options, including:

  • Contract or freelance work (copywriting, furniture building)
  • Owning a franchise (an established regional or national brand)
  • Owning a product-based business (restaurant, brewery, fashion, commercial retail)
  • Owning a service-based business (tech support, fitness, graphic design, house cleaning)

The Security and Structure of an Established Brand

Out of the many possibilities for being your own boss, franchise business ownership is the most structured option. Typically, the franchisor (parent company) provides established business systems that you can follow to mitigate risk. In addition, franchise ownership provides: the following:

Name recognition

Franchising with a well-known company that has positive brand recognition can lead to an increased customer base and faster sales. This helps mitigate startup risks.

Training and business development support

Franchisees can reach out to the franchisor’s network for support, which may include ongoing business training and consultation as well as employee training and retention strategies, proprietary technologies, and more.

Marketing and advertising support

Many franchisors offer marketing tactics or plans, including branded materials that franchisees can use. Some franchisors run national campaigns for brand awareness, which benefits franchise owners at the local level.

Guidance for financing

Lenders are often more likely to finance reputable franchises instead of brand-new businesses that carry more risk. Plus, a good franchisor will guide franchisees through the financing process.

Independence, not isolation

Even if you know how to be your own boss successfully, you don’t have to go at it alone. The right franchisor provides the support system to tap into, while you run your business independently.

Successful Franchise

With Refresh Franchising you have a successful business Mosel you can follow to grow your business.

The Refresh® Difference

When you find an opportunity and an industry that really suits you, franchising can be rewarding. If you’re interested in a home services industry — from Carpet Cleaning to Janitorial to Refinishing and Painting — connect with us at Refresh.

Refresh offers unique opportunities to be your own boss and reach your full potential. In addition to the standard benefits offered by any reputable franchisor, we provide our franchisees with networking and cross-promotion opportunities, vendor discounts, and lead generation support along with Customer Service management and Billing Support in a dedicated territory.

When you choose a home service franchise opportunity with Refresh, you’ll have the independence of being your own boss while receiving unbeatable support from a large network and nationally recognized organization. Every step of the way, Refresh is committed to your success.

To find out which of our home services brands is right for you, fill out our form to connect with a franchise advisor.

Why Invest in a Franchise?

Franchise ownership offers freedom, flexibility, and the opportunity to control your financial destiny. And, unlike independent entrepreneurs and standalone business owners, franchisees have the benefit of backing and support from a proven, national brand.

When you’re in charge of your own business, you can set your schedule, make staffing decisions, advertise and market to your specific community, and run day-to-day operations on your terms. Leave behind the guesswork and uncertainty that comes with standalone business ownership.

Financing your franchise

Being your own boss and securing the funding to do so isn’t as far out of reach as you may think. Here are some options for financing a franchise, but keep in mind that each franchisor may have a more specific list of acceptable financing options.

  • Pay in Full (self-capitalized)
  • Commercial bank loans
  • SBA loans
  • Alternative lenders
  • Investment Account rollovers (401K)
  • Franchisor financing
  • Friends-and-family loans

Yes, there’s more than one way to buy a franchise! Get the details below.

Funding for Franchise

7 Ways To Fund Your Franchise

  1. Self Capitalized
    Some franchisees choose to launch their business from existing funds they accumulated from a savings account, money market account, or from the sale of another business.
  2. Commercial Bank Loans
    This type of loan gives you the money up front, and you pay it back monthly (with interest) over time. Talk to your personal financial institution about this option. Lenders are more likely to approve loans for franchises than for new, independent small businesses. This is because franchises usually carry less risk, as they likely have a proven business model and brand recognition.
  3. Small Business Administration (SBA) Loans
    SBA loans operate similarly to commercial bank loans but with lower interest rates and longer repayment timelines because the U.S. Small Business Administration guarantees a portion of the loan amount.
  4. Alternative Lenders
    Loans from alternative lenders operate like commercial bank loans, but they include some additional terms that will cost you. These loans may be smaller and have shorter repayment periods. Many small business owners pursue alternative franchise funding if they’re unable to secure a traditional loan. Check out this list of reputable alternative lenders at Business News Daily.
  5. Investment Account Rollovers
    Rollovers as Business Startups (ROBS) is an often overlooked option for franchise funding. If you have an inactive IRA or 401K that isn’t growing as you’d like it to, you could roll it over to fund your business . This option for financing a franchise is typically used in conjunction with an SBA loan.
  6. Franchisor Financing
    Ask your prospective franchisor if they offer tailored financing plans for new franchisees. A franchisor might do this through a lender partnership or with capital from the company itself. This can make the startup process smoother for a franchisee because financing plans from the franchisor will account for the franchise fee and accurate funds for items like equipment.
  7. Friends-and-Family Loans
    You and your lender (a family member or friend you know and trust) can decide on the loan terms. Just make sure you create a contract. The terms should ideally include a lower interest rate and longer payback period than a commercial bank loan.

Tips for Securing the Right Amount of Funding

Once you’ve picked a franchise brand and understand your options for financing, it’s time to secure the money you need to buy. Here are some helpful tips:

  • Find out how much money you need to borrow.
    • Calculate the entire initial investment, including the franchise fee.
    • Account for any advertising fees, royalties, or other fees.
    • Account for other associated costs like business insurance.
  • Create a detailed business plan based on market research.
  • Print your official credit history.
  • Compile your personal financial information (income, assets, bills, and debts).
  • Research lending and financing options.
  • Schedule an appointment with a loan officer at your financial institution.
  • Seek alternative franchise funding if a commercial bank loan or SBA loan is not possible.
  • Carefully review documents before signing.

Franchise Training

Franchise training and support are often the main reasons that entrepreneurs choose franchising instead of traditional, independent ownership. However, not all franchisors offer first-rate franchise training. Even if a corporate franchise claims to have an excellent system, their business training for franchisees may not last more than a couple of months. Refresh and its franchise brands are with you every step of the way.

A quality franchise training program may include the following 10 items:

  • Ongoing business training for the franchisee throughout the life of the contract
  • Individualized advice from a dedicated business consultant
  • A deep dive into your business plan
  • Dynamic franchise training that deals with the latest industry and market innovations
  • Technology training (bonus points if key technologies are provided)
  • Marketing training based on established systems
  • Franchise management training and leadership guidance
  • One-on-one access to industry mentors
  • Regional training events and conferences
  • Recruiting and onboarding training materials and guidance

Refresh offers an array of franchise opportunities with well-known, trusted, and proven home service brands, and supports each franchise owner with comprehensive training and support. With Refresh franchise ownership, your professional and personal dreams can come true.

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Starting A Business With No Experience

Starting your own business can be daunting even when you have experience in your field. But there are still so many reasons to do it. You get to be the boss, work your own hours and feel a sense of pride in solving a problem that you see in the marketplace by creating value for the customer. How can you be successful starting a business with no experience? You rely on the expertise of a great team.

With a Refresh Renovations Franchise, you don’t start at the bottom where most small businesses have to start – You have experience, support, discounts and a proven method of success backing you up!

Wide view image of businessman stacking wooden pegs with words of business development and success written on them. Over blue background.

Build your success with the proven strategies of Refresh Franchising.

Very few people have the natural ability or expertise to be efficient at all aspects of running a successful business. That is where the franchisor’s experience comes into play. Franchising allows bigger businesses to branch out and grow while giving people the opportunity to run their own business with the help and support of a larger company that has a proven formula for success. Of course, that doesn’t mean that opening a franchise is a piece of cake, either, but for many aspiring business owners, franchising is a much less risky, yet still rewarding, option.

It gives you independence with guidance.

Our Marketing and branding is already set up for you!Click Here for more information

 

Franchise organizations offer a structure for launching, operating and growing a business. Indeed, the successful franchisor will deliver the entire framework around which the business is built. Franchisors usually create comprehensive operations manuals and training programs for their franchise owners that cover , operations, accounting, technology and other areas that are specific to the particular . These efficiencies are designed to enable franchise owners to earn more and spend less time and effort than otherwise would be required to open and operate a similar business on their own.

Collaboration

The franchise organization model offers the franchisee the ability to grow under a common brand and share in the benefits of a larger group of business owners. Though each business is independently owned and managed, all franchisees share in the collaborative benefits of the organization through the support and oversight of the franchisor including:

  • Group advertising resources not typically available to small, independent business owners
  • Owning your own business and making day-to-day decisions yourself, guided by the experience of a successful business enterprise
  • The ability to sell products and services to markets that company-owned outlets have difficulty serving because of higher operational costs and lower motivation of employees in company-owned outlets
  • The benefit of recognized and proven service marks, trademarks, proprietary information, patents and/or designs
  • Training from successful business operators
  • A lower risk of failure and/or loss of investments than if you were to start your own business from scratch
  • Being a part of a uniform operation, which means all franchises will share the same interior and exterior physical appearance, the same product, the same service and product quality and overall customer brand awareness
  • Operational support from the franchisor, both before and after launching your business venture, in areas such as financing, accounting, employee training and operational procedures
  • An opportunity to enhance your management abilities within an established business model that you couldn’t experience in most employment situations

From the franchisor’s perspective, this collaboration:

  • Offers the franchisor a method of rapid expansion
  • Spreads the brand messaging and awareness over a large network of franchise owners
  • Taps in to the franchise owner community’s “pride of ownership”
  • Allows the franchise owner community to grow due to a duplicable system and support
  • Features increased buying power for goods and services due to higher volume with suppliers
  • Enables new products and services to be developed in the field with more testing and input
  • Provides a steady cash flow to the franchisor to facilitate overall growth of the system
  • Can fund the brand recognition effort to grow nationally and globally

Franchising offers a better chance to succeed

The U.S. Department of Commerce and other authors of statistics concerning franchising have shown that the revenue from franchise establishments accounts for over one-third of all U.S. retail sales.

According to studies on the economic impact of franchises, franchise businesses produce over 3 percent of nonfarm private output in the United States, and when the total contribution of franchise businesses was considered (which includes the goods and services used or purchased by franchise businesses and their employees), franchise businesses account for approximately 9 percent of nonfarm private output in the United States.

Government research over the years has indicated that the success rate for franchise-owned endeavors is significantly better than the rate for non-franchise-owned small businesses. In short, the good news is that franchising makes up a significant part of the national economy and presents a statistically better chance for success than other business options.

The freedom factor

Most individuals seek three common elements when choosing a franchised business:

  • Flexibility
  • Money
  • Status

These three elements are important for a variety of reasons and seem to be common denominators when people seek a new business as a career path. Flexibility has always been a hot button for entrepreneurs who exchange the stability of a “real job” for the freedom that comes with being their own boss. Money, or income, is always a factor but surprisingly is seldom the most important. We know many people who have left huge salaries behind because they were miserable, to pursue the American Dream and launch a business. Status is an all-encompassing category that includes not only titles and position, but more important, the feeling of purpose one has and being a part of something significant.

Owning a franchise can provide you with all three of these elements if you operate the business successfully and manage your time and resources properly.

Happy franchise owners make more money

It’s been said that if you love what you do, you can’t help but succeed. There’s a lot of truth to this statement. If you can align yourself with a franchise that really fits, you’ll be much happier, which in turn results in higher productivity. This is a simple philosophy that’s often overlooked. Some franchise organizations have suffered because they lost sight of this reality during the fast growth stages.

Just put your signature here! Cheerful young man signing some documents while sitting together with his wife and man in shirt and tie

The explosive growth that many franchises experience is referred to as “ stick” growth due to the way it’s charted on a line graph. Sometimes companies are so successful and grow so fast that they seemingly forget about the little things that made them successful in the first place. In this case, their initial success can lead to their ultimate failure. A franchise organization that forgets that their franchise-owner community is in fact their “customer” base (each of whom should be treated with respect and with an eye towards making them satisfied) usually comes down like a house of cards.

Think about this for just a moment: If the franchisor understands that its franchisees are the heart and soul of their success and understand a very basic premise — if the franchisees are happy then they’ll generate more revenue — then it will build on that reputation and financial model. But if the franchisor sees its franchisees merely as cogs in a wheel that deserve no respect, the system ultimately fails — and not because the end product is poor, but because the sales force that’s presenting the product to the general public is dissatisfied. We see this all too often.

As you evaluate franchise organizations, be sure to investigate their commitment to their franchise owners, as well as their future development plans to enable their franchisees enjoy continued growth and success.

 

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