If you’re ready to take charge of your future, you are already looking ahead to an exciting adventure. But when it comes to starting your own business, there is one big question that must be answered first: Should you go independent, or team up with a proven franchise system?
At Neighborly®, we’ve helped thousands of entrepreneurs just like you turn big dreams into thriving franchise businesses. We know that freedom, flexibility, and growth potential matter, and we believe you shouldn’t have to choose between being your own boss and having expert support.
In this article, we’ll walk you through the real pros and cons of starting a business from scratch versus owning a franchise. You’ll learn why Neighborly’s franchise model gives you the best of both worlds: empowering you to grow faster, operate smarter, and stay independent, all while having a strong foundation beneath you.
Introduction To Business Ownership
When considering business ownership, entrepreneurs have two primary options: starting their own business from scratch or invest in a franchise. Both paths have distinct advantages and disadvantages, and it’s essential to weigh these factors carefully to determine the right path for your goals and risk tolerance. Starting your own business allows for complete control and autonomy, giving you the freedom to shape every aspect of your venture. However, this path also comes with significant challenges, such as building brand recognition and customer trust from the ground up.
On the other hand, investing in a franchise offers a proven business model with an often-higher success rate and built-in support. Franchise owners benefit from established systems, comprehensive training programs, and ongoing support from the franchisor. This can significantly reduce the risks associated with starting a new business. But as a business owner it’s crucial to consider factors such as initial investment, brand recognition, and customer trust when making your decision.
Independent Business Ownership: Total Freedom, Total Responsibility
Starting a business from scratch can be exciting in many ways, but also incredibly challenging. For example, you get complete creative control, you are 100% in charge of every aspect of your business, and because of this, every success can feel completely your own. If you have a strong desire to do it all yourself, independent business ownership can sound like the ultimate adventure. However, independent business owners often have to put in hard hours during the early years to ensure their business’s success.
The flip side, of course, is that you are on your own - for everything. Building a brand from the ground up can be years of hard work with little reward as you create customer trust from zero, develop marketing strategies, and set up every creative and operational aspect of your business without a blueprint to guide you. As you can imagine, going the independent route can take a lot of trial and error to get right, and a lot of time and money wasted trying to find solid footing. Studies from Guidant Financial and SBA.gov show that independent start-ups face greater obstacles than other businesses. From a financial standpoint, the risks can be higher for solo entrepreneurs, it can be harder to obtain financing, and scaling your business effectively can be difficult if you’re not sure how to go about it. All of this means a thinner margin of error and steep learning curves.
Franchise Ownership: Freedom Backed By A Proven System
Now, imagine owning your own business, but starting out with a playbook built for success already in your hands. That’s the power of choosing a franchise business.
As a franchise owner, you get the freedom to run your own business while tapping into the strength of a nationally recognized brand. Franchise businesses also typically come with proven business models, access to industry experts, comprehensive training, and ongoing support. This is perhaps the most valuable benefit of franchise business ownership: it’s like having the flexibility of an independent business that comes with a team of specialists backing you every step of the way.
On the other hand, no path to business ownership is 100% perfect. Owning a franchise business also comes with challenges that you need to know about before making a decision. For example, the initial cost of starting a franchise business can be a bit daunting, especially for new entrepreneurs. While some franchises, including those in the home services industry, are more accessible, there are ongoing costs and fees associated with franchise business ownership that you’ll pay in exchange for brand recognition, marketing power, and operational support.
Speaking of operational systems, most franchises will have a set of guidelines that all franchise business owners are expected to follow. For entrepreneurs seeking total creative freedom, these guidelines may feel a little restrictive. You’ll also need to work closely with your franchisor when making significant changes to ensure that you are staying within the terms of your franchise agreement. Still, while franchise ownership requires working within a system, the right franchisor makes all the difference.
Curious which brands could be the right fit? Explore them here.
The Investment Value Of Neighborly Franchise Ownership
When you invest in a Neighborly franchise, you're not just buying a business—you’re investing in your future, your freedom, and your financial growth. Neighborly provides valuable financial performance insights within the Financial Disclosure Document (FDD) that can help franchise owners benchmark their business outcomes.
Starting a business independently often means you’re paying for everything out of pocket: branding, marketing, technology, hiring, training, you name it. With Neighborly, your investment unlocks a proven system that already includes these essentials, built and proven over decades of success. While there are costs associated with franchising, such as royalties and franchising fees, these costs are offset by the comprehensive support and brand recognition provided by Neighborly brands.
Here’s what you get as a Neighborly franchise owner:
- Instant Brand Recognition: Customers trust our brands, giving you a head start in your local community.
- Built-In Marketing Muscle: Access national marketing campaigns plus local strategies to grow your customer base.
- Business Management Tools: Proprietary technology systems to help you streamline operations and scale faster.
- Training and Support: Ongoing coaching from experts who know how to help you succeed.
- Community and Collaboration: A network of fellow franchise owners and Neighborly teams who always have your back.
And because Neighborly owns a family of top-performing brands, you have the ability to diversify your financial portfolio within the system, growing your business in multiple service areas if you choose.
When you combine your drive with Neighborly’s proven model, your chances for success—and real long-term growth—can go way up.
In short: with Neighborly, you're not just investing money. You're investing in a team of experts designed to help you thrive.
Franchise vs. Independent Business Success Rates
Small business considerations are critical when deciding between starting your own business and investing in a franchise. Independent businesses face many challenges, including building brand recognition and establishing customer trust from scratch. This often requires significant time, effort, and resources, and the journey can be fraught with trial and error. However, for those who value complete creative control and autonomy, the rewards can be deeply satisfying.
In contrast, franchise owners benefit from an established brand and comprehensive training programs, which can help mitigate these risks. The franchise system provides a solid foundation, allowing you to leverage the brand’s reputation and proven business model. However, franchisees must also consider ongoing fees, such as royalty fees, and the potential lack of control over business decisions. These fees are the price of accessing the franchisor’s support and brand power.
Thorough research and understanding of all your options as an entrepreneur is necessary to make an informed decision. By weighing the pros and cons of each option, franchising vs. independent business, you can determine which path aligns best with your business goals and personal preferences.
The success rate of franchises versus startup businesses is a significant factor to consider when deciding which path to take. According to various studies, franchises have a higher success rate, with over 90% of franchises still operating after five years, compared to only about 50% of independent businesses. This is largely due to the proven business model and ongoing support provided by the franchisor. Franchise owners benefit from established systems, comprehensive training, and a network of fellow franchisees, all of which contribute to a higher likelihood of success.
Successful startups often require a significant amount of time, effort, and resources to establish a strong brand identity and existing customer base. Independent business owners must navigate the challenges of building their business from scratch, which can be a daunting and risky endeavor. As a prospective franchise owner, it’s essential to consider the success rate of the franchise and the level of support provided by the franchisor to ensure a successful business ownership experience.
By investing in a franchise with a proven track record, entrepreneurs can minimize risks and maximize their chances of achieving financial success and a steady paycheck. This makes franchising an appealing option for those looking to start a new business with a higher likelihood of long-term success. Hear from one of our franchise owners, Justin Eimers, on the differences between franchising and independently running his own business:
Build Your Dream Of Becoming A Business Owner On A Stronger Foundation
At the end of the day, choosing between independent business ownership and franchise ownership is a decision only you can make.
Neighborly empowers you to lead your own business, make your own decisions, and shape your future—all while benefiting from a trusted brand, industry expertise, and a community of fellow entrepreneurs who want you to succeed. You’re independent, but never alone.
Ready to see where your dream could take you? Get all the information you need by downloading our free Franchising 101 Guide!
