Large or Small Franchise? Determining Which is Right For You

Choosing between a large or small franchise can be a tough decision for some entrepreneurs. Both large and small franchises can provide you with unique benefits that you cannot get with the other type. Here are a few things to consider about large and small franchises and which one would be best for you.

Investment Size

One of the biggest differences between these two types of franchises is the amount of money that you will have to invest. Large franchises take larger investments in order to make them work. With smaller franchises, you can put up less money on the front end and you can also pay smaller franchise fees while you are an owner. Some of the larger franchises out there cost millions of dollars to get set up. It takes a person that has access to a large amount of funds to make this work. There are smaller franchises available that you could start for less than $25,000. Many people can gain access to this type of money and get started owning their own business.

Profit Potential

Something else that you have to consider with this decision is the profit potential. With larger businesses, you will have a larger potential for profit. The well-known franchises that cost a lot of money are the ones that will always have plenty of customers. These franchises have worked hard to build up a brand name that everyone knows. With these franchises, you will simply have to open a location and people will start to come. With small franchises, you may not have the brand recognition that comes with a large franchise. You will have fewer customers, which means that you will have to work a little bit harder to make money. The profit potential will be smaller, but you also have to compare this to the smaller initial investment.


You should also take into consideration the amount of responsibility that will be required with each type of franchise. With a large franchise, you may have to oversee every aspect of daily operations. These types of businesses can be very time-consuming. You will basically have a full-time job. With smaller franchises, you may not be as busy. You could be very profitable and allow someone to handle the management duties for you.

Since there is less business with these types of franchises, you will not have to allocate as much of your time to them. If you are simply starting a franchise for a side project, you may want to go with a smaller business that does not require as much of your time. If you are simply looking for a profitable business opportunity and you have plenty of time to allocate towards it, you may want to lean towards a larger franchise. This can give you the most return on your investment. 

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