Thinking about buying a business?

It’s a big decision, but choosing between a franchise or an independent business can shape your entire experience. Both have their perks—and their pitfalls. So how do you decide?

First, consider what drives you.

If you thrive on structure and proven systems, a franchise might be the better fit. You are investing in a business model that has already been tested, tweaked, and rolled out successfully. That means fewer surprises. Franchisees often benefit from national brand recognition, built-in marketing, and the support of an established network.

But it comes at a cost.

Franchise fees, royalty fees, marketing fees—these add up. You are essentially paying for that built-in system. So if you are looking for more freedom and don’t want the ongoing cost of those fees eating into your profits, an independent business could be your best move. You control the business. There are no ongoing payments to a franchise company for using their brand or playbook.

The best part? Both options offer the opportunity for success.

However, what most people don’t realize is that both franchises and independent businesses fail at about the same rate. Buying into a franchise does not guarantee you’ll succeed, just as starting your own independent business isn’t a sure path to struggle. It comes down to how you operate the business, how you solve problems, and how well your market fits your offering.

So, which is right for you?

That depends. Are you the type of person who values creative freedom? Then, owning an independent business might be more up your alley. But if you are someone who likes to follow a proven path and is willing to pay for the systems that come with it, a franchise may be the perfect fit.

Ultimately, the choice boils down to your strengths, risk tolerance, and business goals. Either way, the success—or failure—will be yours to manage.

Choose wisely.