Franchise vs Startup — Franchise Ownership vs Building a Startup: Different Games, Different Math

A franchise and a startup are both entrepreneurship, and almost everything else about them differs. The franchise trades control for guidance: you buy the right to run a proven model under someone else's name, rules included. The startup trades guidance for control: no playbook exists, so you write one. The honest comparison is not which is better. It is which game your money, skills, and temperament actually fit. The caveat: the two paths differ most in what they cost to fail. A failed franchise usually dies with its fees; a failed startup usually dies with its runway. Price both failures before choosing either. What Exactly Do You Buy in a Franchise? Per the Small Business Administration's documented guidance, a franchise is a model where the franchisor sells the rights to its logo, name, and business model to an independent owner.

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