What is a Business Opportunity Versus a Franchise?

26.11.21 02:07 PM By Stacey Riska



What is the difference between a business opportunity (biz op) and a franchise?

9 things that help distinguish a business opportunity (biz op) from a franchise.

  1. The big thing right up front, of course, is there is generally a small cost to get started in a biz op vs. a franchise.

  2. Many/most biz ops don’t charge ongoing fees like the royalties and add fees of a franchise. So all the money that the owners make from their business is theirs to keep.

  3. The cost It’s all basically determined by a one-time startup fee based on the amount of equipment/products that person wants to purchase upfront, coupled with a proven business program.

  4. It generally means, as a biz op, there are no restrictive territories.

  5. It also generally means that a biz op owner can work with any clients, no matter where they come from. So basically no protection on clients, prospects and territories.

  6. Biz ops don’t have an Franchise Disclosure Document (FDD) Item 19 to deal with. However, most still offer a company profile. It has all of the same kind of information in it and protections offered through state and federal disclosures, just like you would get with a franchise. Most allow a candidate to validate all of company profile information with other owners as they work through the process.

  7. A biz op start-to-finish sales process to start up is usually a much quicker process than that of a franchise.

  8. Biz op owners get to call it their own business name, they use their own website, and their own marketing pieces.

  9. Biz op owners get to determine how they run their business day-to-day, and how much help and training they want to undertake (generally with no requirements).

So if you are evaluating whether to look at a business opportunity (biz op) versus a franchise, it is important to know your own strengths and weaknesses. If you are new to business or like structure, perhaps a more proven hands-on system, training and guidance of a franchise might be better for you even though the cost to get going is generally going to be greater with a franchise. 


On the other hand if you are more of a self starter and like flexibility, or really want to start your own business with limited capital, there are many wonderful biz ops out there to choose from. So if you are interested in learning more about some great biz ops reach out and give us a ring or send us an email.


Author Bio


I’m Stacey Riska aka “Small Business Stacey”, your franchise placement specialist. I help aspiring business owners find the PERFECT franchise so they can get to the next level in life and business.
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Stacey Riska