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Resource Center > Article
What Are The Advantages of Buying A Business Opportunity Versus A Franchise?
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Buying a Business Opportunity is much easier than buying a franchise. This is not to say that buying into a franchise is a bad thing; it isn’t. Franchise investment has its own advantages that you may want to consider. However, a Business Opportunity has a few specific advantages that a franchise can’t offer.

Above all a Business Opportunity in almost all cases has a lower threshold of investment than a franchise. You can get involved in some Business Opportunities at no cost, as I’ve outlined in a recent blog post. The average cost of a Business Opportunity is roughly $1,750 to $3,500. The average cost of a franchise is almost five to eight times more than that amount.

Lately, the number of “low-entry” franchises has been on rise and is especially true since the market collapse. Yet, the price to buy a Business Opportunity is still far less than buying into a franchise system. It should be noted that the FTC requires that a minimum of a $500 investment be made in order for it to be considered a true Business Opportunity. Yet, many are priced lower than this and still may be considered a Business Opportunity.

In most cases, a Business Opportunity offers better financing options. In addition, you can put your entry fees on a credit card to buy a wide range of Business Opportunities. Also, the Business Opportunity parent company may offer a range of financing options for you to consider.

Some other major benefits to consider when looking to buy a Business Opportunity, versus a franchise are as follows:


  • Site selection assistance

  • Possible free legal advice

  • A proven system of operation

  • Free & ongoing training

  • Greater purchasing power

  • Better and more improved advertising & marketing methods

  • Ongoing support that most independent owner(s) can not afford on their own

  • And most vital, no ongoing royalties

Generally speaking, a franchise requires ongoing royalty payments and this is certainly not the case with a Business Opportunity. When you earn a profit you keep it!

Make sure to read my next blog on Sunday. I’ll be discussing some of the disadvantages of buying a Business Opportunity.

Carpe Diem My Friends

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Entrepreneur's Source for Everything Business Opportunity and Franchise Related

I had the pleasure of chatting with Shawn Pigg, CEO of Hotels Etc. for BusinessOpportunity.com's Podcast series that will be released very soon on our new Digital Platform.  Here is the transcript from that call for our regular RSS feed subscribers who get all of our posts first.

If you would...
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