Introduction
Tell me what is wrong with this sentence: Franchising provides the opportunity for entrepreneurship. It is grammatically correct and “entrepreneurship” is a “real” word; so, where is the error? It is in the logic of the statement. Being a franchisee and being an entrepreneur are not one of the same.
An entrepreneur embraces the total risk of creating an idea, generating the revenue to get started, and implementing their know-how in order to make their business work. Becoming a franchisee is a bit different. Most of the autonomy has already been completed in the process and the business franchisee maintains the processes and vision started by the franchise.
Either business venture can be lucrative, but they should not be confused for one another. Becoming a franchisee does grant one a great deal of freedom because there will still be superiors to answer to and patterns of others will have to be adopted. For a true entrepreneur who thrives on their creativity and isolation in calling the shots, the role of the franchisee may not be appealing.
The reverse is also true. For one who enjoys security and structure, yet wants to branch out on their own, becoming an entrepreneur may appear to be too risky. Franchisees get guidance from the franchisor and a cookie-cutter outline in order to model their business. These factors can become huge advantages in providing success.
The following will illustrate some broad differences in the two “species” of business.
How much risk are you willing to take?
Entrepreneurs are “trail blazers;” they enjoy pledging responsibility and sacrificing their time and energy in contributing to their own ventures. One needs to know how far they are willing to go in taking a risk and making a commitment. Some people thrive off of the dire consequences of the matter and some may feel that the level of stress and anxiety is too high. Becoming an entrepreneur requires taking more risks, but offers more rewards.
How secure do you want to be?
It is no secret that it is much safer to become a franchisee than an entrepreneur. Guidelines are set for the franchisee to stay within and once the system is learned, there are not many surprises. Entrepreneurs will not have to answer to superiors or have to comply in reference to other’s plans, but they will not have the security of knowing that their business has already been successful and there are people in the system to support them.
How strongly do you feel the need for expression?
Entrepreneurs have an unimpeded platform for expressing themselves. Since they are their own true boss, they can perform tasks and develop ideas in whatever fashion they please. This is not entirely true for franchisees. Franchisees are following the format of preceding and ongoing franchises; though depending on the ideology of the franchisor, some franchisees may have opportunity to provide insight and have freedom in changing some things.
How big are you willing to go?
Entrepreneurs (if successful) will have the opportunity to expand the structure of their business to include more services and products. This is also true of the franchisee, but it is usually ultimately approved or disapproved by the franchisor. Business franchises usually test new products or services at limited locations to see how well they will fair with existing customers. This is advantageous in seeing if something will make money, but does not provide as much freedom if incorporated exclusively.
Conclusion
Some people with entrepreneur-like mentality can be a good fit for becoming a franchisee. It does not offer as much freedom as being an entrepreneur, but the level of risk is much lower. One of the greatest advantages of becoming a part of the franchise industry is that there are people with experience available to help you with specifics. A successful brand name will have proven itself in the eyes of the public; so, many problems will have been encountered and conquered.
