Franchise or Buy a Business?

Here’s What You Should Know. 

We’re highlighting two popular ways to fulfil your dream of becoming an entrepreneur: buying a franchise or purchasing an existing business. Before diving in, it’s important to understand the key difference: franchising offers more guidance but less control, while buying a business gives you more control but less support. 

Franchising: A Proven Path with Structure 

When you buy a franchise, you’re stepping into a well-oiled machine. You get the rights to use the brand’s name, logo and business model—along with built-in marketing, training and operational support. 

Three are two common types: 

• Product/Trade Name Franchising: You sell branded goods supplied by the franchisor. 

• Business Format Franchising: You follow a complete business system, from site selection to daily operations. 

The trade-off with franchising? You must follow the franchisor’s rules, which can limit flexibility. 

Buying a Business: Freedom with Responsibility 

Buying an existing business means you assume responsibility for operations, customers, staff and revenue streams. The biggest advantage is you have an existing blueprint that can include important factors, including an established customer base, defined operating expenses and fully trained employees. You gain full control over decisions—but you’re also responsible for charting your course, often without guidance. 

While buying a business allows for more creativity and independence, it also requires a solid business plan and strong management skills. 

Bottom line: Whether you value structure or autonomy, both options can lead to successful entrepreneurship. It’s all about finding the right fit for your goals and strengths.  

At Bank of New Hampshire, our experienced commercial banking team partners with businesses of all sizes to find the right financing to meet their unique needs. Visit BNH.Bank to schedule an appointment.  

Credit: U.S. Small Business Administration