The similarities are endless, but there are a few very important differences between franchising and business opportunities. In business opportunities, you are generally a salesperson or an internet marketer, promoting and selling a product or service for a company. You are pretty much on your own, will not have any employees, and will receive your commissions directly from the company. You won't have much overhead, though, since you can generally run these out of your home office.
In a franchise, you are in a retail or restaurant environment. You have a brick and mortar business that will draw your income and profits. You hire employees to help you run your store or restaurant. You pay the employees and your overhead. You then pay a percentage of those profits to the franchise as royalties for using their brands and their name. The company doesn't pay you anything.
One thing that seems similar between franchising and business opportunities is the training factor. In both scenarios you will receive some great training in sales and certain aspects of owning a business, such as promotion and taxes. The training will probably be ongoing and specific to the business you are getting into.
The franchisor will provide you with a basic crash course of how to run a business, from hiring to firing and from sales to paperwork and taxes. You will get much better training, education, and experience from a franchisor that can be taken from that business and applied to another business in the future. Basically, a business opportunity is something you do to earn money with flexibility. A franchise is a business you buy that will not offer as much flexibility, but will allow you the chance to get a head start in the business world.
Jerry_Cantrell
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