One of the first big forks: buy into a franchise (a proven brand and system) or open your own independent concept (full control, no royalties). Neither is simply "better" — you're trading control for a system.
| Franchise | Independent | |
|---|---|---|
| Brand & concept | Proven, recognized on day one | You build it from scratch |
| Systems & support | Training, playbook, supply chain, marketing | You design every system yourself |
| Upfront cost | Franchise fee (~$10k–$50k+) plus a mandated build-out & equipment package | No franchise fee; more flexible — often a lower entry |
| Ongoing cost | Royalties (~4–8% of gross sales) + ad-fund fees | None — you keep the margin |
| Control | Limited — menu, suppliers & equipment set by the franchisor | Full — your menu, your suppliers, your kit |
| Financing | Often easier — lenders like proven models (SBA Franchise Directory) | Lender scrutinizes your concept & plan |
| Risk | Lower failure rate, but royalties skim revenue forever | Higher risk, but all the upside is yours |
This is where the two paths diverge in practice: a franchise usually mandates a specific equipment package and layout — brands, models and even the floor plan — so you buy to spec with little choice. An independent picks its own equipment, which is where getting the decisions right actually matters (and where our guides help). Either way, what it costs to open and how you finance it are the next questions.
Both paths commonly use SBA loans — franchises listed in the SBA Franchise Directory can streamline approval. See SBADecoded for the loan and Section 179 side.