Buying a franchise is a good way to start your entrepreneurial life. You can start investing in a proven business model and finally leave your nine-to-five job behind. But since this still costs a considerable amount of investment, you can end up deciding between going solo and finding a business partner. Which option works best for you?
Taking a restaurant business opportunity or any franchise opportunity for that matter can be life-changing. There are risks involve, whether you do this yourself or with a partner. If you are not sure between starting a business partnership and going solo, consider the advantages and disadvantages of your options.
The Pros and Cons of a Franchise Partnership
Buying a franchise with a partner helps you lower your costs. Since you have a partner to share the costs with, you may not need to drain your savings. You can even increase your chances of getting approved for a loan.
You have someone to share the responsibilities with and have a stronger team, to begin with. With two or more heads working together, you can come up with the best solutions for your business problems.
But with a franchise partnership, you will need to share the profits since you are not the only one who has invested time and money in the business. You cannot make the decisions on your own unless you agree that only one of you will be the sole decision-maker. There can be a lot of arguments, especially when one of you fails to compromise on a decision.
The Pros and Cons of a Solo Franchise Purchase
When you are the only one investing in a franchise, you get to be your own boss and run the business yourself. You can control the business and create an exit strategy without having to think about a partner’s opinion. If you think that you have a solution to a problem, there is no need to consult your partner and compromise.
A solo franchise purchase also allows you to enjoy all the profits yourself. You can earn more and build a reputation for yourself as a solo business owner. Since you make all the decisions, both the successes and failures of your business are credited only to you.
Buying a franchise on your own also has its disadvantages. For one, you will need to shoulder all the costs and fees. You will need to apply for a business loan on your own if your savings are not enough to cover for the purchase and all the costs included. Since you are on your own, you may need to work longer hours and be on call even with a manager to run the business.
A franchise partnership and a solo franchise purchase have their own pros and cons. By weighing the risks and advantages, you can determine which setup will work best for you. If you think that you are better off investing and making all the decisions yourself, then going solo in a good option. But if you are willing to compromise, need extra funding, and don’t mind sharing the profits, then you can consider a franchise partnership.