Buying a business can be a very challenging decision for an entrepreneur. The first step in this procedure is to decide the type of business you want to procure. Next step is whether you want to buy an independent business or a Franchise. If you want to acquire an business or franchise, you can check with Business for Sale Edmonton and get whatever information you require about the businesses for sale.
In truth, you cannot easily tell which option is better, an independent business or a franchise. However, you can assess the aspects that make independent business different from franchise business:
Freedom To Make Decisions
A franchise owner does not have the liberty to make any changes in products and services offered by the company. Franchises must follow a set of rules and procedures set by the Franchiser Company. On other hand, the owner of an independent business is free to make decisions and run the business as they see it depending upon the market conditions.
Independent business owners do not have the advantage of established and improved methods to run their business. When they buy a business, they will have to make all the decisions based on their own experience and understanding about the target markets. However, franchise owners do relish in the security and permanence that comes equipped with a franchise company. They don’t have to worry about the product lines, or service offerings as Franchiser provides them with a well-established and verified business structure.
Investment Costs And Decisions
Independent business acquisition may require higher amount of investment, but the business owners have the freedom of making all the investment and expansion decisions based on the requirement of the business. On the other hand, Franchise business buyers do not require a large amount for investment. All they need to do is satisfy the conditions set by the Franchiser and they will be all set to start running their business. However, the business owner may have to pay royalty fee to Franchiser on a continuing basis. If you want more information about how Franchise operates, you can refer to marketplace like Business for Sale Edmonton.
An owner of a Franchise will have to pay a license fee to the Franchiser, in order to gain the right to run a business and selling a prearranged set of products or services offered by Franchiser Company. But the independent business owners are free to make the decision regarding what will they sell and how they well sell it. They are completely responsible for all the decisions they make but without any kind of support from an experienced and official source.
Existing Brand vs. New Brand
The main reason behind buying a Franchise is that it comes with a well-established brand name. However, there can also be a shortcoming that if the Franchiser or any other Franchise of that Franchiser is caught for substandard business practices, it can have a negative impact on other Franchises as well. On the other hand, independent business owners may have to start from the scratch to rebuild a brand name for their newly acquired company.
The best approach to decide which option would be better for you is to put time and efforts exploring advantages and disadvantages of both the business models. Check out all your resources you have and assess market conditions, and then make the final decision. You can also take the help of online marketplaces like Business for Sale Edmonton to get more information about which option is better.