Franchising is a business model in which an individual (the franchisee) buys the rights to operate a business under an established brand, using that brand’s name, systems, and support — from a franchisor.
In practice, this means you pay an initial fee (and often ongoing royalties) to the franchisor, and in return you get:
- A recognised brand name and reputation
- Operational systems, training and support
- Often marketing and purchasing leverage
- A model that has been tested in other markets
Why franchising may be a better option
If you compare franchising to starting a business entirely from scratch, there are several advantages that make franchising appealing:
1. Lower risk / higher chance of success
Because a franchise uses a proven model, you avoid many of the pitfalls of “trial and error” that new startups face. Some studies suggest franchisees have higher survival rates compared to independent new businesses.
Also, banks or investors may view franchise ventures as less risky thanks to brand recognition and a tested model.
2. Brand recognition & faster customer trust
When you open a business under a known brand, customers are more likely to trust it—this means you might gain revenue faster than building a brand from scratch.
3. Support, training, systems
You don’t always have to reinvent every part of the business. The franchisor often provides training, operations manuals, marketing help, supply chain arrangements, etc., which can shorten your startup learning curve.
4. Easier financing and scaling
Because you’re dealing with a known brand, you might find it easier to secure loans or investors. Also, scaling (opening more units) might be smoother because the model is already defined.
When franchising might not be the best option
Of course, franchising has its trade-offs. It’s not always the “best” choice for every entrepreneur or market. Here are things to watch out for:
1. High initial cost & ongoing fees
Buying a franchise often means a big upfront investment, plus ongoing royalty payments, marketing fees, and restrictive purchasing rules. These costs can cut into profitability.
2. Less control & creativity
As a franchisee you usually must follow the franchisor’s rules: on how to operate, what to sell, branding, store layout, etc. If you’re the type of person who wants to create and innovate your own way, this might feel constraining.
3. Dependence on the brand’s wider reputation
If the brand suffers (scandal, poor performance elsewhere, supply chain issues), it affects all outlets, including yours. You have limited ability to change that.
4. Not exactly “ownership” in full sense
You may own the outlet, but many decisions (pricing, suppliers, products, operations) might be dictated by the franchisor. That means less freedom and possibly lower upside than building your own brand.
How to decide: Is franchising right for you?
Here are some key questions you should ask yourself, especially in your local context (Ghana / Nigeria / West Africa) before choosing franchising:
- Do you have sufficient capital for the initial investment + ongoing fees + working capital?
- Are you comfortable operating under someone else’s brand and following their rules?
- Do you believe the brand will work in your market (local culture, preferences, location, cost structure)?
- How much autonomy do you want in running your business (products, marketing, suppliers, expansion)?
- Are you prepared to do the hard work (staffing, operations, local marketing) even though you get support?
- How will currency fluctuations, import costs (if the franchise needs foreign supplies), regulatory issues in your country affect the model?
- What is the exit strategy? Can you sell or leave the franchise later?
- Have you done due diligence: talked to other franchisees, looked at performance, seen financial disclosures?
The verdict: Is franchising better?
There is no one-size-fits-all answer. In many cases, for entrepreneurs who:
- want to reduce risk
- prefer guidance and structure over full autonomy
- have enough capital
- operate in a market where the franchise brand fits
then franchising can be a better option than starting from scratch. The built-in brand, support and proven model are strong advantages.
However, if you:
- want full creative freedom
- have a unique idea or deep understanding of your local market
- are prepared for higher risk and want higher long-term upside
- have limited funds or want flexibility
then building your own business might be a better fit.
My recommendation for your context
Given that you are working in Africa (Ghana/Nigeria region) and likely aware of local market dynamics:
- If the franchise brand you are considering has solid evidence of success in your region or a similar context, franchising is strongly worth considering.
- But also check how localised the model is: Will it adapt well (consumer behaviours, supply chain, costs, local regulations)?
- Consider whether you might instead build your own brand that is more finely tuned to your target local community. That might take more time and effort, but could give you greater long-term control and potentially higher profit margin.
- Also think about hybrid models: maybe start your own brand, build it strong, then franchise it yourself later.
