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Is it Better to Start a Business or Buy a Franchise?

Is it Better to Start a Business or Buy a Franchise?

How do you decide between buying a franchise and starting your own business from scratch? What factors should you consider and where do you start? It can be a challenging decision, and both options certainly have their advantages and disadvantages. Equip yourself to make that decision by researching your options thoroughly and gathering as much information as possible on each opportunity you’re considering.

Should I Franchise or Start My Own Business?

You’ll want to carefully consider how a franchise opportunity or new business aligns with your personal and business goals, along with the following areas as a starting point. Keep in mind there are several factors which require diligent research and consideration.

Financial Risk

When evaluating your entrepreneurial options, financial risk is one of the major concerns. You’ll need to consider all the expected costs involved in opening a business from scratch compared to buying a franchise business, along with setting expectations for how much time it will take to make a profit. You’ll also need to decide how much financial risk you’re comfortable with. When franchising, you’ll have a more solid estimate or better idea of a range of costs and expected return, whereas with starting your own business, the financial figures may fluctuate significantly more.

Costs to consider when opening a business include (but are not limited to) real estate, technology, advertising and marketing, labor costs, equipment and supplies, permits or licensing fees, and many others. Franchise owners pay monthly, quarterly, or annual franchise fees, typically calculated as a percentage of sales, which cover some of these costs of doing business.

While franchising can lessen the uncertainty of opening a business thanks to its established business model and available support system, becoming a business owner in general carries at least some degree of financial risk.

Creative Freedom

Deciding between starting a business or buying a franchise can also involve creative freedom considerations. While both options result in becoming a business owner, the level of creative freedom you have along the way may weigh in on your decision.

Opening a business from scratch can involve branding, sourcing suppliers and materials, marketing and advertising, and a tremendous amount of trial-and-error to discover what works for your business and adapt your operations along the way. To some entrepreneurs, this process is part of the excitement of becoming a business owner—using their own creative instincts to build everything from scratch. But to others, the benefits of an established business playbook and brand name allow them to focus solely on operations and other aspects of the business.

Operations Support

Along the same lines as creative freedom, potential business owners need to determine their desired level of operational support. When starting a business on your own, you may not have resources to consult or previous success stories on which to base decisions, whereas with franchising, there is an established support system and resources available when issues or challenges arise.


When you start your own business, you may have more freedom to choose the location, build a new location, or even adapt your business model based on available real estate. Franchisors sometimes have more specific guidelines or requirements regarding business location or may only have specific markets available depending on the nature of the business. The number of locations within that franchise system that already exist within a certain region may also dictate where a new franchise location may be opened.

What Are the Benefits of Franchising?

Deciding between starting your own business from scratch and opening a franchise can be difficult. To help make the decision a little easier, learn more below about some of the benefits of franchising.

Established Brand

Buying into a franchise system means becoming part of an established brand. Franchisees pay for the right to use the brand name, and gain access to brand guidelines which outline the brand’s tone of voice and brand style, among other brand elements.

Backed by 40 years of franchise experience, The UPS Store is an industry leader among today’s most rewarding franchise opportunities. The myriad of accolades is a testament to the growing brand strength and proven model.

An established brand name is also more recognizable in the community, helping franchise owners to build their loyal customer base and other relationships within their local communities.

Operational Structure

When you become a franchise owner, you will work from an established operational structure and business plan which has been put to the test by franchisees before you. As business needs and the industry change, the business plan adapts to improve and allow franchisees to grow with the brand.

The operational structure of a franchise system also helps franchise owners with profitability. The predetermined, tried-and-true business plan has been put to the test and removes some of the trial-and-error that may inhibit profitability.

Advertising and Marketing Support

Franchisees can leverage years of experience and knowledge of marketing research on the brand’s audience and target market, whereas an entrepreneur starting from scratch would need to conduct this research on their own.

The UPS Store invests in national advertisements and marketing campaigns to increase brand awareness across the country, as well as regional and local campaigns to help franchisees grow in their local community.


Buying a franchise allows owners to realize cost efficiencies due to larger scale buying power. The franchise network can leverage its scale in sourcing and purchasing materials, supplies, and other items needed to conduct business so that franchisees see lower costs than an individual business startup might.

Expected costs with franchising are also more easily determined than with starting a business from scratch, where it may be more difficult to plan ahead and keep costs steady. Because other franchisees have experienced the process and learned along the way, that better solidifies the cost expectations for new franchise owners. Learn more about The UPS Store franchise costs.


Collaborative Network

Investing in a franchise means becoming part of a collaborative network of other franchisees. With The UPS Store, retail owners also have corporate support and a franchise development team available when challenges arise. We understand the work and commitment it takes to start and run your own business, and we’re committed to our retail owners along their franchising journey.



Learn more about franchising opportunities by contacting our franchise development team. Discuss the possibility of owning your own retail location and joining the vast network of like-minded The UPS Store owners.

2023 Entrepreneur's Franchise 500 Top Rated for Veterans badge

We Proudly Support Our Veterans

Participating partners with the VetFran program, The UPS Store offers qualifying veterans $15,000 off their franchise fee to start their new business. To learn more, contact The UPS Store Franchise Development Team.

Entrepreneur's Franchise 500 Ranked #4 in 2023 badge

Ranked for over 30 Consecutive Years

The UPS Store has been ranked #1 in the postal and business services category for over 30 years and remains in the top 5 overall for the seventh consecutive year according to the Franchise 500 list.

Kristin Howard

Franchisee, Michigan

The reason my husband and I decided to go into franchising and specifically with The UPS Store, is the different opportunities we're given with the business. The UPS Store has name recognition as well as opportunities to expand.

Debbie Adams

Franchisee, Kentucky

What I enjoy most about being a The UPS Store owner is working with my customers. We are the solution specialists for our customers.

Jim George

Franchisee, Illinios

My favorite part about The UPS Store network is the camaraderie with other franchisees. Everybody loves to help everybody else. You’re really part of a family.

Greg Murray

Franchisee, Florida

The interesting thing about The UPS Store is that when a customer walks through the door there's an extremely high probability that they're coming there to do something that is important to them. So at the end of the day, what we do for customers is very important and they are trusting that we are going to do it well.

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Mariana Huberman

Franchisee, Washington, D.C.

One of the things that I love about The UPS Store franchise system is that you're not ever in this by yourself. The franchisees of The UPS Store network are great.

Heidi Morris

Franchisee, Colorado

The thing I enjoy most about being a The UPS Store franchisee is I get to get up, go to work and know that I'm helping other business owners succeed in what they're doing.

Bob Brown

Franchisee, Tennessee

Owning a The UPS Store franchise has changed my life because it's finally given me the opportunity to engage my customers and my staff and be able to take real pride in what I do. As a franchisee, we get faced with solving peoples' problems every day and we do everything we possibly can to try to help.

Marie Jensen

Franchisee, Oregon

My favorite thing about The UPS Store is the variety. I love the variety of customers, I love the variety of services; getting to know the customers, meeting their needs, finding out how we can help them accomplish what they need to accomplish and seeing how happy they are. That makes me ecstatic.

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Tad Mollnhauer

Franchisee, Florida

With the products and services that The UPS Store provides we can make a difference in people's lives and that is the best reason for being a The UPS Store owner.

Joy Batchelor

Franchisee, Idaho

What makes being a The UPS Store franchisee worthwhile at the end of the day is the customers. The customers treat us like we're family.

Paul Erchinger

Franchisee, Texas

One nice benefit of owning a The UPS Store franchise for me has been that it gives me the opportunity to be more involved in the community. As I make relationships with others it seems like no matter what the environment is, in one way or another business comes out of that and that's not my objective—it's been a secondary benefit to being involved in the community.

Chris Reminder

Franchisee, Ohio

There are several things that I really enjoy about being a The UPS Store franchisee. First and foremost it allows me to get to know the people in the local community and that is a lot of fun. We get to see people on a regular basis. We get to know their life stories. That's a lot of fun.

Bruce Jones

Franchisee, Kentucky

Since we have joined The UPS Store, our life has changed by just having more time to spend together as a family. We've been very fortunate with the stores that we have and we have a great staff that looks out for our best interest and we look out for theirs.

Lonnie Williams

Franchisee, Oklahoma

What makes The UPS Store so successful is it gives each individual an opportunity to grow with the network and just meet the challenges that are brought to them on a daily basis. Every day gives us a new opportunity to help another person, to help another small business, to answer a question and to solve a problem.

Jeff Graham

Franchisee, Alabama

I love my customers. I love my employees. I love every person, every face that comes into my store. I enjoy every day going into work and I can't see doing anything else for the rest of my life.

Stacie Stigar

Franchisee, Alaska

I think that this franchise is so successful because of all of the resources that are available to us as center owners—we have marketing materials, we have so many different opportunities for help from the home office, and it just really makes for a great franchise.

Don Pollard

Franchisee, New Jersey

I think the thing that makes this franchise successful is a number of things. First of all we have an outstanding system, we have a great product, a great brand, and we're able to attract dynamic people to run these centers and run the business. So I think when you put all that together it really provides for a winning combination.

Mary Ellen Nichols

Franchisee, Tennessee

The thing I love about the franchise is that you have the UPS name backing you but yet you also have the autonomy to make your own decisions to promote.

Laura Griffin

Franchisee, Florida

In the eight short months I've owned my The UPS Store it has really changed my life. I've gone from being an employee of someone else to being an employer of my associates. It's a big responsibility but it's exciting every day.

Sandy Scandrett

Franchisee, Wisconsin

Being a The UPS Store franchisee has improved every aspect of my life. It's very rewarding financially, professionally, and emotionally. I have a large number of regular customers who are really, really appreciative of everything we do.

Kristie Robison

Franchisee, Alabama

I would say owning a The UPS Store location has changed my life to where I have more time and flexibility. In owning your own business you get your store up and running and you get employees that you can trust that are going to help keep your store running. This allows me to attend my two boys' ball games and also travel and do things with them so it has really changed my life for the better.