What's your best bet?
Licensing vs Franchising
There are basically three options available to individuals who are interested in starting and operating a successful and profitable snack food business…
- Purchase a franchise
- Purchase a license
- Wing it on your own
All three paths for starting and operating a snack food business are viable and available. Deciding upon which option is best for you depends upon several factors and your individual situation with respect to your goals for your business and investment:
- Do you need the detailed support, but tight controls required by a franchise?
- Are the benefits of a license without the restrictions and support of a franchise of value to you?
- What is your level of general business experience, particularly in starting and operating your own business?
- What is your level of experience in the food industry?
- Do you want the prestige and exclusivity of a national brand? (both licenses and franchises offer varying degrees of this)
- Is internet marketing of your store important to you and your market strategy?
- Do you mind giving up the freedom and flexibility of ownership required by a franchise?
- Can you meet the financial requirements of net worth and personal disclosures required by franchisors?
- Do you have the several thousands of dollars required to purchase a franchise?
- Do you mind sharing a percentage your ongoing revenue and paying a monthly co-op marketing fee to a franchisor?
These are just some of the questions you will need to answer before choosing which path of development you will pursue.
While there are many legal and structural differences, the primary differences are:
With licensing, you, not the franchisor, control your own business. There are no requirements of our licensees whatsoever other than these simple terms…
- Pay your licensing fees on time and keep them current.
- Properly display the brand and logo on signage, in advertising and on printed materials.
- Prepare the products according to our guidelines and ingredients.
Unlike franchises for restaurants now available:
- We do not require you to attend initial training seminars or management meetings.
- We do not require licensees to link to our central computer system or utilize our security/access software.
- With our licensing, you do not have to submit any reports of any kind to license headquarters or share any personal financial or credit worthiness information.
- There are no marketing funds or co-op advertising fees you must participate in.