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When it comes to buying a business, one of the biggest questions aspiring entrepreneurs face is whether to go franchise or independent. Both paths have their pros and cons — and the right choice depends heavily on your goals, background, and risk tolerance. In this post, we’ll unpack the real differences between the two, dive into key research comparing their resale values, and share expert insights from Beau Eckstein on how to define your buy box and make the smartest investment possible.
Understanding the Franchise Advantage
A recent study from Palm Beach Atlantic University’s Rinker School of Business analyzed 2,159 business resales over a 10-year period. The results were striking:
Franchise businesses sold at prices 1.5 times higher than comparable non-franchise businesses.
Why the premium? It comes down to three core factors:
- Established Brand Recognition – Buyers are often willing to pay more for a name customers already trust.
- Proven Business Models – Franchises have systems and playbooks that have been refined over years.
- Ongoing Support & Training – New owners aren’t left on their own — franchisors offer guidance in marketing, operations, and even hiring.
In other words, buying a franchise can mean paying for predictability, scalability, and a recognizable brand that accelerates your ramp-up time.
The Independent Business: Flexibility with Higher Risk
On the flip side, independent businesses give you freedom and full control — but they come with their own challenges. While you can make changes without corporate approval, you’re also responsible for everything: branding, marketing, systems, and innovation.
Even if you purchase an existing independent business with strong cash flow, that revenue can disappear overnight if key employees leave or loyal customers drift away after the ownership change. As Beau Eckstein explains:
“Even if you take over a cash-flowing business, there are often challenges — maybe it’s staffing, maybe the customer base disappears because the previous owners are no longer there.”
For this reason, many buyers who think they’re avoiding startup headaches by buying an existing independent business still find themselves facing operational growing pains.
Matching the Right Model to Your Goals
There’s no one-size-fits-all answer. The ideal path depends on your personality, skill set, and financial goals.
Beau recommends starting with a comprehensive assessment — such as the Zoracle Profile — which analyzes your motivators, work style, financial capability, and business aptitude. This kind of data-driven matching helps align you with opportunities that truly fit who you are.
He also suggests defining your “buy box” — a clear picture of the type of business, industry, investment level, and lifestyle you’re targeting. Once you’re crystal clear on your criteria, you can evaluate franchise startups, franchise resales, and independent acquisitions more effectively.
Financing and Feasibility: The SBA Advantage
Franchise startups often have a leg up when it comes to financing. If the franchise is approved on the SBA directory, obtaining an SBA startup loan can be relatively straightforward.
For business acquisitions, lenders typically look for:
- Good credit
- Strong outside income
- Stable or growing business revenues
However, deals can become tricky if the business shows declining revenues — banks are more hesitant to finance those transitions.
Eckstein’s firm works on both sides of the equation:
- SBA loan advisory for business acquisitions
- Franchise startup and resale funding
This dual expertise allows his team to guide clients through the nuances of financing, whether they’re launching a franchise or acquiring an existing business.
The Bottom Line: Do What Fits You
Franchises often command higher resale prices and offer built-in systems, but they require adherence to corporate rules. Independent businesses give freedom and creative control but demand more time and operational muscle.
Beau’s advice?
“Look at all opportunities as you define your buy box, and get crystal clear on what makes the most sense for you.”
Whether you’re leaning toward a proven franchise system or want to build your own legacy through an independent business, clarity is key.
Ready to find and fund your ideal business?
👉 Schedule a free consultation at bookwithbeau.com and discover how Beau Eckstein’s team helps entrepreneurs navigate SBA loans, franchise funding, and business acquisitions.
And don’t forget to grab your free eBook, The Biz Scaling Playbook, at bizscalingplaybook.com to learn how to grow your operation with virtual assistants and AI systems.
Beau Eckstein has over 20 years in the lending industry and is on a mission to help one million aspiring entrepreneurs become successful business owners. Subscribe to his YouTube channel for weekly insights on business ownership, SBA financing, and franchise growth.