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Research 2
Presented by:
Philip Jommel Milano
Komjet Talastas
Jeremy Eser Jose
“A Study about choosing between
Franchising and Independent
business among selected
businesses in Plaridel,Bulacan”
Difference between Franchising and
independent business
A franchising business is a business in which the owners, or “franchisors”,
sell the rights of their business logo, name, and model to third party retail
outlets, owned by independent, third party operators, called “franchisees”.
An Independent business is a business wherein you own a business without
purchasing any business logo and name to gain a larger sales and profit.
Some examples of Franchising business
Some examples of an Independent business
Advantages of buying a Franchise business

* You do not necessarily need business experience to run a franchise. (Franchisors

usually provide the training you need to operate their business model.)
* Franchises have a higher rate of success than start-up businesses.
* Franchises often have an established reputation and image, proven
management and work practices, access to national advertising and ongoing
* Strength through size
Disadvantages of buying a Franchise business

* Buying a franchise means entering into a formal agreement with your franchisor.
* Franchise agreement dictate how you run the business and so on.
* There are usually restrictions on where you operate the business, the products you sell and
the suppliers you use.
* Bad performances by other franchisees may affect your franchise’s reputation.

Franchising is seen by many as a simple way to go into business for the first time. But franchising is no guarantee of
success and the same principles of good management – such as informed decision-making, hard work, and serving
your customers well.
Advantages of having an Independent business

* Personal Satisfaction. You’ll be able to work in a field that you really enjoy. You will be
able to put your skills and knowledge to use, and you will gain personal satisfaction from
implementing your ideas, working directly with customers, and watching your business
* Independence. Entrepreneurs make their own decisions. They decide what time or hour
to work.
* Financial Reward/Gain. Entrepreneurs offers a greater possibility of achieving
significant financial rewards than working for someone else.
* Control. It enables one to be involved in the total operation of the business, from concept
to design to creation, from sales to business operations to customer response.
* Prestige. It offers the status of being the person in charge. There is the
prestige and pride of ownership. When someone asks, “Who did this?” the entrepreneur can
answer, “I did.”
* Learning opportunities. As a business owner, you’ll be involved in all
aspects of your business. This situation creates numerous opportunities to gain
a thorough understanding of the various business functions.
Disadvantages of having an Independent business

* Financial Risk. You may need to commit most of your savings or even go into debt to get
started. If things do not go well, you may face substantial financial lost. In addition, there is no
guarantee income. There might be times, especially in the first few years, when the business
isn’t generating enough cash for you to live on.
* Stress and Health Issues. As a business owner, you are the business. There’s a bewildering
array of things to worry about- competition and customer problems.
* Time Commitment. Running a business is extremely time-consuming. In fact, you’ll
probably have less free time than you’d have to working for someone else.
* Undesirable duties. You’ll be responsible for either doing or overseeing just about
everything that needs to be done, and you’ll probably have to perform some unpleasant tasks.