Entrepreneur Versus Franchisee

A major benefit of operating a franchise is that a person is able to step into a business that has been tested and produces results. The negative aspect of this is that they will have to pay fees and a portion of their profits. While this may be less profitable, it does provide more stability.

An entrepreneur must create and find the concept and funding for their business. The positive element of this model is that a person can end up hitting a home run and make a large number of profits if their concept is a huge winner. All of the profits that they make can be pushed back into the company for growth or used as salaries.