How Do I Determine If a Business Opportunity Is a Franchise for Sale?

February 1, 2013 | By

As you do your initial research to own your own business you will discover that there are many differences. One major difference is the type of opportunity. There are two types of opportunities, business opportunities and franchises.  You may wonder how you can tell the difference between these. One way to tell the difference between the two is whether or not you will have to pay any royalties to the company (more on the differences here). If you have to pay royalties to the company, then the business is most likely a franchise. You can quickly see if an opportunity is a franchise or a business opportunity on on each company page.

business opportunity franchise

How to determine if the business is a franchise or business opportunity on


Purchasing a Franchise for Sale Will Include Making Royalty Payments

You may hesitate at the idea of having to pay royalties when you find a franchise for sale. However, what you need to consider is the percentage amount of the actual payments. Is the percentage calculated on your total gross sales or net sales? There is a difference between the two, which can affect the amount you have to pay. On the other hand, paying royalties gives you access to ongoing training, support and advertising from the company, for no additional costs, in some cases.

Learn more about the differences between franchises and business opportunities here.

The answers to frequently asked franchise questions.

Are you already ready to decide if a business is right for you? Take the franchise compatibility quiz now to see if you should make the jump!



About kelly

Director of Marketing at Franchise Solutions & Experienced at lead generation & project management. Mama of 2, wife, runner, sprint triathlete, gardener, living just outside of Portsmouth, NH.

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Comments (3)

  1. this is so helpful. tks

  2. Just make sure that you choose the right franchise business for you, cause if you don’t then all the investment will just go to waste.