Weighing the Options: To Franchise or Self-Start [INFOGRAPHIC]

More than 700,000 small businesses in the U.S. are franchises, meaning they apply another firm’s business model to their individual businesses. The franchisee adopts everything from the franchisor’s brand name to the goods and services it offers for a fee or a cut of sales. While the franchisor’s success hinges on the success of its franchisees, franchisees own direct stakes in their businesses. Well-known franchises include Subway, The UPS Store, and Cold Stone Creamery.

We examined the pros and cons of becoming a franchisee versus starting an independent small business. Click the infographic for an enlarged view.

Infographic by Column Five.

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About Monica Appelbe

Monica Appelbe is a member of Intuit’s Small Business communications team. A Pittsburgh native, her favorite hometown restaurants are family-owned small businesses.
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3 comments
Michael Webster
Michael Webster

I am a huge supporter of the franchise model, but this graphic is terribly misleading.  The worst offence is to suggest franchising is less riskier than starting your own business.  Even if it was true, and it isn't, the personal guarantees you sign as a franchisee make the loss loom much larger.   You are signing up for a 10 - 20 year term.  I would suggest that anyone who wants to learn the real nuts and bolts about franchising read the IAFD's experts at: www.franchise-info.us

Jordon
Jordon

This info graphic is the shit!

Laura Dodson
Laura Dodson

Cool! May I copy this? This is something that new business owners ask about.Laura

Trackbacks

  1. [...] Exterior (MDIC). Portanto, para ajudar você a decidir entre  uma startup ou loja franqueada, o Intuit Blog publicou esse infográfico, que mostra bem os prós e contras de ambas. Olha só que [...]

  2. [...] Exterior (MDIC). Portanto, para ajudar você a decidir entre  uma startup ou loja franqueada, o Intuit Blog publicou esse infográfico, que mostra bem os prós e contras de ambas. Olha só que [...]

  3. [...] do mundo. Portanto, para ajudar você a decidir entre uma startup ou loja franqueada, o Intuit Blog publicou esse infográfico, que mostra bem a diferença entre cada uma e os prós e contras de ambas. Olha só que [...]