Small vs. Big Franchises: Is Bigger Always Better?

Entrepreneurs who are looking to start their own businesses may be interested in the prospect of owing a franchise. As a franchisee, you will have access to an established brand and training materials provided to you by the parent company. However, should you opt to start a franchise through a large company or opt to become a franchisee of a smaller company with more potential?

Why You Should Partner With the Big Business

A large company already has a following that will attract customers. This means that it should be easy enough to build a storefront and start making money. Depending on where you are in the country, you could put your own spin on a known brand by offering specialty products or by offering better service than other locations.

Why You Should Partner With the Smaller Business

When you partner with a small business, you may be given more leeway to do what you want with your location. The company is generally more interested in growing and increasing profit than it is in sticking to a rigid ideology. Therefore, you may feel more like your own boss than you would with a bigger company. You may also benefit from lower franchise fees and potentially lower royalties.

Why You Shouldn’t Partner With the Big Business

To some, the local business will always be better than the national chain that everyone has heard of and used. For instance, it may be easier to grow and market a restaurant that no one has heard of as opposed to a Wendy’s or McDonald’s. You may also need more money to launch the company and may need to have a higher net worth to be considered as a franchise owner.

Franchisees May Have Better Relationships With Smaller Brands

In many cases, smaller companies are being run by the original owner or one of the original founders. Therefore, he or she may put a bigger premium on developing relationships with those who establish franchises. This relationship may make it easier to run a company according to your own view and vision for how it should be run. If you get into trouble, the original owners may be more interested in protecting the brand as opposed to treating you as a disposable product.

If you are looking to be your own boss, working with a smaller company may be the best decision that you have ever made. You can build a real relationship and help an emerging brand get in on the ground floor in your area. This can help you make money while also allowing you to prove yourself as a business owner in your community.