How do I compare buying a franchise with buying an existing business?
I am comparing a franchise opportunity with an existing independent business. The franchise has brand support, but the independent business has real operating history. What should I compare?
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Compare control, risk, fees, and proof. A franchise gives brand, systems, and training, but you pay royalties and may have less flexibility. An existing business gives actual revenue history, staff, suppliers, and customers, but you inherit its problems. Compare owner earnings after fees, lease quality, transfer rules, customer concentration, and how much freedom you need as an operator.
Ask whether the franchise forecast is from your exact market or from another country. A strong brand in one market does not guarantee local performance.
I prefer existing businesses when numbers are clean because I can see real behavior. With a franchise, I focus heavily on fees and lease assumptions.