Franchise Vs Start UP

Entrepreneurs have plenty of questions that need answered when they’re planning new ventures, covering everything from business type to location to funding.

But there’s one other question that is just as important: Should the new business be a franchise?

Budding restaurateurs Brian Kubik of Buxton-Kubik-Dodd Interiors and Architecture and Paul Freeman of Computech Mailing Service, and industry veteran Jeff Hurshman chose a franchise – Cleveland-based San Francisco Oven – when they were ready to open an eatery in 2006 under the Oven Spaces LLC banner.

“With a franchise, a lot of the headaches have been worked out,” said Kubik, whose group paid $300,000 to renovate their first space, at 1845 E. Sunshine St., in May 2006.

“The menu’s been made, the kitchen’s been decided, the equipment has been decided, the approach, what people wear, what the place looks like, how the business is run.”


Dealing with details

That the details are taken care of by the franchise is one of the biggest draws for entrepreneurs, according to Terry Hill, vice president of communications for the International Franchise Association.

“You’re buying a system that is, as much as possible, perfected in the marketplace,” Hill said. “You also get a recognized brand and the marketing muscle behind that. You get a support system.”

Hill noted that IFA is gearing up to conduct a survey of U.S. franchise operations, but he said that in 2001, when the last survey was conducted, there were 2,500 viable franchise systems in the United States and more than 767,000 franchised businesses by the end of that year.
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