This is a question that I am often asked and to be honest, there is always a lot of debate about this interesting aspect.
Let’s first look at the definitions of an entrepreneur and a franchisee.
An entrepreneur is an individual(s) that develops a concept and manages a business venture to gain profit by taking several risks.
A franchisee is a business owner who has been granted the right to use an existing business’s trademarks, associated brands, and other proprietary knowledge to market and sell the same brand and uphold the same standards of the business.
As can clearly be seen from the above definitions, entrepreneurs make their own decisions regarding their business’s products, service, marketing, logistics etc. Franchisees on the other hand, are given all of this when granted a franchise and must abide by the rules and regulations of the franchise business. The key difference between being an entrepreneur and a franchisee is that you will need to create your own brand and concepts as an entrepreneur but follow someone else’s brand and concepts as a franchisee.
There are plenty of similarities between an entrepreneur and a franchisee as both roles require initiative, vision, and independence. An entrepreneur and a franchisee have huge responsibilities to make difficult decisions and keep everything on the right track in their individual capacities as business owners.
The challenge for an entrepreneur to make a good franchisee is the discipline to follow the rules and regulations of the franchise business and can be a huge asset to the franchise if allowed to put ideas and recommendations forward to improve the franchise business.
The debate goes on….
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