Franchise Business vs. Own Business

This assignment provides a comparative analysis of launching a franchise business versus opening one's own business. It presents different perspectives from authors and scholars, highlighting the importance of developing business plans for success. The report also includes information on motivated franchised entrepreneurs and uses qualitative methods to analyze the data. Ultimately, it concludes that purchasing a franchise can be a safe idea for conducting effective full business operations.

FRANCHISING VS
OPENING YOUR OWN
BUSINESS;
OPPORTUNITIES AND
THREATS

EXECUTIVE SUMMARY
This study elaborated to develop understanding of information on opening business in
franchise or setting a business of your own. The following investigation will get developed to
analyse opportunities and threats of franchising and opening new business in Australia. In the
views of Mark Siebert, opening franchise is one of the greatest growth strategy. He has shared
his decades of experience, which provides practical advice in order to meet growth of the
business. In the views of Cronje (2016), major threat which associated with entering into
franchise is regulatory risk. As per the views of Barringer (2015), an entrepreneur might have to
face financial loss as starting a new business involves huge capital investment. As per the
perception of Popovich (2019), in order to operate business model, franchisor usually provides
training to individuals. Franchises generally have higher chances of success rather than starting
up a new business activities.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PROJECT OBJECTIVE..................................................................................................................1
PROJECT SCOPE...........................................................................................................................1
LITERATURE REVIEW................................................................................................................2
Literature problems.....................................................................................................................4
Gap opportunities........................................................................................................................4
RESEARCH QUESTIONS.............................................................................................................4
Primary question.........................................................................................................................4
Secondary questions....................................................................................................................4
RESEARCH DESIGN AND METHODOLOGY...........................................................................5
Research design...........................................................................................................................5
Research approach......................................................................................................................5
Data collection............................................................................................................................5
Sampling.....................................................................................................................................5
Reliability and validity of data....................................................................................................5
Selection of qualitative research.................................................................................................5
RESEARCH LIMITATIONS..........................................................................................................6
TIME SCHEDULE..........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
In this assessment, explanation of literature review with its justification gets developed.
In such explanation more emphasis will be developed on primary and secondary questions. Its
literature problems, gaps opportunities and hypothesis will get explained. Moreover, further
explanation will get developed on types of research designs and methodologies. Lastly, in this
report, limitations of research and its time schedule will be provided.
PROJECT OBJECTIVE
Aim: to analyse advantages and disadvantages of franchising and starting up of new business
Objectives:
 To identify the biggest opportunities which can be captured by launching franchising
business.
 To determine the biggest threat which associated with franchising.
 To analyse the threats which associate with starting up of business.
 To evaluate whether establishing a new business is right decision.
 To determine the significance of franchising and small business.
PROJECT SCOPE
The following investigation will get developed to analyse opportunities and threats of
franchising and opening new business in Australia. The topic is selected to analyse different

perception of entrepreneur of starting ventures and franchise in order to conduct smooth business
operations. By analysing such opportunities and threats, researcher will able to develop
knowledge which is related to advantages and disadvantage of franchise and of your own
business.
The following study will get developed in order to provide useful information to other
researcher in same field. Significance of this study is to provide information from different
source of articles and materials so that better understanding will get develop to open a new
business or frnachise.
LITERATURE REVIEW
Theme 1: to identify the biggest opportunities which can be captured by launching
franchising business.
In the views of Mark Siebert, opening franchise is one of the greatest growth strategy. He
has shared his decades of experience, which provides practical advice in order to meet growth of
the business. Primary advantages of entering into a franchise business is to raise capital, speed of
growth, motivates management and risk reduction. In recent times, most common barrier which
small businesses are facing nowadays is regarding lack of access to capital. Credit ability of such
entrepreneur is bounding them in getting a successful growth. Therefore, according to Siebert,
Franchising is the alternative form of capital acquisition. Reason behind it is that it allows
companies to grow in business market by using resources of others. It also allows small business
entrepreneur to expand their business without risk of debt or cost of equity. On the other hand,
starting a new business requires a huge involvement of capital investment which may result in
suffering financial loss.
However on the critical not Fan, Kühn and Lafontaine (2017), mentioned that this form
of business is not suitable for strongly entrepreneur business types who wants to expand their
business form. According to him, if a person has lots of initiatives and ideas then put it into your
business rather than being abide in other's agreement. Thus, there are lots more opportunities in
doing business of your own rather than being abide in agreement of franchise.
Theme 2: To determine the biggest threat which associated with franchising.
In the views of Cronje (2016), major threat which associated with entering into
franchise is regulatory risk. As per their perception, it is very much necessary for franchisees to
update their laws and regulation with the changing amendments in franchise law in order meet

opportunities of business market. On the other hand opening own business will result in getting
addition source of income which overall helps in expanding business operations.
However, in the views of Burns (2016), major drawback which is associated with
opening business in franchising is that a person who wants to enter in this sector will have to pay
royalties and other feeds which may result in decline of profit margin. On the other hand, in
setting your own business, entrepreneur does not have to pay such charges. In own business,
individual may able to setting up their own rules and procedure system in which they do not have
pay much of royalties and other fees.
Theme 3: To analyse the threat which associate with starting up a new business.
As per the views of Barringer (2015), an entrepreneur might have to face financial loss as
starting a new business involves huge capital investment. According to views of author there is
less risk factor which associate with franchising as compared to starting your own business.
There is a lack of support in opening own business which result in facing issues as well as
challenges for running smooth business operations.
However, in the views of Webb, Knutson and Gamble, (2017), opening new business is
much better than opening business in franchisees. An individual may achieve professional
freedom and flexibility in doing its business operation rather than to abide in the agreement of
franchise. By opening business of your own, individual may able to explore its business with its
own ideas rather than seeking permission to others in order to explore business.
Theme 4: to evaluate whether establishing a new business is right decision.
In the views of Vorley, Fearne and Ray (2016), starting a business may result in right
decision because it requires a less average cost. In this business type there is freedom to
entrepreneur for developing own decisions in order achieve business growth. In this type of
business small business owners are supported by investors or by bank which result developing a
smooth business operations. Major disadvantage is that a business owner will able to change its
product line in accordance with their own wish.
However, it is argued by Schaper, (2016), that establishing own business is not a right
decision because opening a new business requires huge cost investment and one wrong decision
will get result in suffering big financial loss. Author also stated that due to lack of time and
improper resources, a small businesses will not able to make huge investment in activities of
research and development. Thus, in his views establishing new business is not a right decision.

Theme 5: to determine the significance of franchising and small business.
As per the perception of Popovich (2019), in order to operate business model, franchisor
usually provides training to individuals. Franchises generally have higher chances of success
rather than starting up a new business activities. Buying a franchise will result in generating less
cost in comparison to start own business in same line of business.
On the contrary, it is argued that Pearson, (2016), starting own business is much useful in
comparison to buy a franchise. Individual will able to create their own procedures and systems
by which probability of earning higher source of income get increases which overall results in
expansion of business activities.
Literature problems
While representing this study, there are some literature problems which faced while
containing appropriate research. Problem which generally faced while conducting research is
regarding irrelevant material which is not based on current scenario. Lack of proper time is also a
factor which is been faced while preparing this literature. Another problem which has been faced
in writing literature is regarding not appropriate discrimination between relevant and irrelevant
materials.
Gap opportunities
Relationship between opening a new business or setting a business in franchise will be
more elaborative if some articles is been understated accurately. In this study, reviews are
analysed with some material which is out dated. If denied access is been provided while
searching material in websites than more accurate information will get presented in this report.
RESEARCH QUESTIONS
Synopsis of Research
The franchising helps to get flexibility in work and entrepreneurs are not being stuck to
traditional pattern of work. They can easily attain desired work with flexible arrangements and
ensure adequate output is met (Russel. 2016). It is being possible with technology-driven era
where everything can be controlled in a better manner. Thus, franchising and flexibility of work
goes hand in hand for ensuring work-life balance is accomplished.
Opening up a new business assist in providing flexibility at work as entrepreneurs have
new ideas for execution which assist in acquiring profitability for business. Moreover, Startups

provide new ideas for conducting a business. Opening a new business assist in conducting
business with flexibility by arranging the things step by step for achieving better result.
Primary question
 What are the advantages and disadvantages of franchising and opening up a new business
from the view of flexibility at work?
Secondary questions
 What are the biggest problems which an individual may captured while launching
franchising business?
 What are the threats which associated with franchising?
 Mention some threats which associated with starting up of business?
 What is the significance of franchising and small business?
RESEARCH DESIGN AND METHODOLOGY
Research design
In this study, research design which is been utilized to analyse the correct information is
quantitative technique (Quinlan and et.al., 2019). In order to present reliable information, tables,
graphs and charts have been analysed. Moreover, with the help of this quantitative research,
researcher is able to attain numerical facts.
Research approach
Information in this present study have been analysed by utilizing information through
deductive approach. For representing such information, effective theories and themes have been
identified by studying documents, recordings and with other printed and verbal materials.
Data collection
In order to provide accurate information in this study, both primary and secondary data
have been collected. For presenting reliable information, questionnaires and surveys have been
analysed through previous published research papers, articles and journals and structured or
unstructured observation have been used as well.

Sampling
In this study, purposive non-probabilistic sampling methods have been used. In order to
do effective research selected participants are 20 for this method of sampling. Investigation
which get developed in doing this study are entrepreneur of start-up venture and franchises.
Reliability and validity of data
Apart for above mentioned techniques, some other methods which have been used to
reassume reliability of data is retest method (Litosseliti, 2018). To represent effective source of
work Triangulation is considered as best method for evaluating and gathering information from
primary and secondary sources of data.
Selection of qualitative research
In this report, qualitative method have been considered as more effective and flexible
because in order to meet criteria of present report this method is the best suitable as compared to
quantitative technique. To represent effective investigation, a case study of research technique in
which utilization of process for types of study has been mentioned.
RESEARCH LIMITATIONS
Provided information in this report is based on only 20 participants in which selected
candidates are only entrepreneur of start-up ventures and franchise. This is the most basic
limitations which have been faced to represent this report. There is no proper availability of
equipments and financial resources by which more specific information will not get generated.
Through the use of SPSS, software more accurate and reliable information get presented but due
to limited period of time and limited availability of resources study will not be presented as it is
to be.
TIME SCHEDULE
Activity 1st
Week
2nd Week 3rd
Week
4th
Week
5th
Week
6th
Week
7th
Week
8th
Week
9th
Week
10th
Week
developing
research topic

Literature
review
Drafting
Methodologies
evaluating
Proposal
Designing of
questions and
research
Documentatio
n of records
Evaluation of
data
Discussion
and
Conclusion
Final Report
Editing and
Completion
CONCLUSION
From the above report, it can be concluded that there are different perspective of authors
regarding franchise or setting up own business. Some of the authors are in favour of launching
franchising business where they are ensuring success and some different are in favour of opening
a business of your own. There are different view points of scholars which have mentioned that in
order to meet business success, high efforts is been required in developing business plans.
Argument is been provided in this report both from the perspective of authors which are in
favour of opening franchise business and other who are in favour of opening own business.
This report also present information with proper investigation on motivated as well as
background of franchised entrepreneur through non-probabilistic sampling. Information is also
analysed with qualitative method of technique so that proper judgement will get developed.

Therefore, it can be finally concluded in the opinion of researcher that purchasing a
franchise will be a safe idea for conducting effective full business operations. It provides a stable
and careful offer to entrepreneur with appropriate tested model so that business operations
smoothly get developed.

REFERENCES
Books and Journals
Barringer, B.R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Fan, Y., Kühn, K.U. and Lafontaine, F., 2017. Financial constraints and moral hazard: The case
of franchising. Journal of Political Economy. 125(6). pp.2082-2125.
Litosseliti, L. ed., 2018. Research methods in linguistics. Bloomsbury Publishing.
Pearson, S., 2016. Building brands directly: creating business value from customer relationships.
Springer.
Quinlan, C and et.al., 2019. Business research methods. South Western Cengage.
Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship. CRC
Press.
Vorley, B., Fearne, A. and Ray, D., 2016. The Internationalization of Food Retailing:
Opportunities and Threats for Small-scale Producers. In Regoverning Markets(pp. 27-42).
Routledge.
Webb, C., Knutson, C. and Gamble, T., 2017. First Watch Franchise Expansion Proposal.
Online
Cronje, M., 2016. Six challenges facing the franchising sector. [Online]. Available through
<https://www.fin24.com/Finweek/Entrepreneurs/six-challenges-facing-the-franchising-
sector-20160211>
Popovich, S., 2019. Six Secrets to making business decisions that get results. [Online]. Available
through <https://www.entrepreneur.com/article/237562>
Russel, J. 2016 Why flexible working goes hand in hand with franchising. [Online]. Available
through: <http://elitefranchisemagazine.co.uk/people/item/why-flexible-working-goes-
hand-in-hand-with-franchising>