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I frequently speak to prospective clients that are really diving into the ETA evaluation – looking at existing businesses to buy. ETA is the “sexy” and popular route for investors and people looking to own a business without starting from scratch. Many haven’t even thought about franchising – but it is becoming more popular as a way to leave corporate or diversity revenue streams. Let’s dive in a bit more:
- Franchising, where you buy the rights to operate under an established brand.
- Entrepreneurship Through Acquisition (ETA), where you acquire and grow an existing independent business.
Both models have their pros and cons, and your decision should depend on your goals, risk tolerance, personality, and resources.
Let’s break down both options to help you make a confident, informed choice.
What is Franchising?
Franchising involves investing in a business model developed by an established brand. You pay fees to become a franchisee and get access to brand recognition, systems, support, and ongoing training.
Example: Opening a Jersey Mike’s or ServPro
What is ETA (Entrepreneurship Through Acquisition)?
ETA is the process of buying an existing, independent business with the goal of running and scaling it. These are usually small-to-medium-sized companies with stable cash flow, retiring owners, and untapped growth potential.
Example: Buying a local HVAC company or a regional marketing agency.
Franchise vs. ETA: Key Differences
| Factor | Franchise | ETA (Acquisition) |
| Risk Profile | Lower (proven model) | Higher (varies by deal) |
| Startup Time | Faster (weeks to months) | Slower (6–12 months for search and close) |
| Support | Extensive franchisor support | Usually none—you’re on your own |
| Brand Control | Limited (must follow rules) | Full control and flexibility |
| Entry Cost | Often lower ($50K–$500K+) | Varies ($200K–$5M+) |
| Operational Complexity | Simpler, more standardized | Often complex (employees, systems, legacy issues) |
| Exit Potential | Depends on brand and territory | Potential for higher valuation/multiple |
| Ownership Feeling | Shared with the franchisor | Full ownership and autonomy |
When Franchising Might Be Right for You
- You want structured support and a proven roadmap.
- You’re a first-time entrepreneur looking for lower-risk entry.
- You prefer operational execution over building from scratch.
- You’re okay with paying royalties and following a system.
Best for: operators who want to plug into a successful machine and scale within clear guardrails.
When ETA Might Be Right for You
- You want to own and control 100% of the business.
- You have experience in leadership, operations, or deal-making.
- You’re comfortable with uncertainty and willing to solve messy problems.
- You’re aiming for bigger upside and long-term equity value.
Best for: strategic thinkers who want to grow and transform a business over time.
Fit Tip: You Can Do Both
Some entrepreneurs start with a franchise to gain experience and cash flow, then move into ETA once they’re more confident. Others acquire an independent business and later franchise it themselves.
Final Thoughts
There’s no “one-size-fits-all” answer. Whether you choose franchising or ETA, you’re already ahead by pursuing ownership over employment.
Ask yourself:
- Do I want freedom or structure?
- Am I more of a builder or an executor?
- How much risk am I willing to take?
Both franchising and ETA can lead to financial freedom and personal fulfillment—if you choose the path that aligns with who you are and what you want.
The biggest question I ask of anyone considering ETA or Franchise Ownership – what do you want your role to be? Define your day-in-the-life. You still need to find FIT in any business.
Have questions about either path?
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Becoming a franchise owner can be an incredible step toward independence—but not all franchises are created equal. What works for one person might be a terrible fit for another. Believe me, I learned the hard way! I will dive more into that in a second.
The top two questions that people ask me – which is NOT the most important question.
1. “What’s the best franchise?”
2. “What franchise makes the most money?
What you need to ask is – “What is the best franchise FIT for ME?”
Secret: If the franchise FITS you, then you will have the answer to the questions above. That will be the best franchise and you will increase your odds of business success.
Finding the right fit isn’t just about profit potential. It’s about aligning the business with:
- The role you want to play
- The time you’re willing to invest
- The customers you want to serve
- The team you want to lead
Before I go any further, let me share my own story.
I was handed the opportunity to own a franchise—literally handed to me. Who wouldn’t be excited? Owning my own business had always been in the back of my mind. I’d gone to graduate school, built a solid career, and when this opportunity came along, I thought, Yes! This is it. Let’s do it.
Fast forward: I took over an existing franchise (stay tuned for my blog on the pros and cons of buying existing vs. starting fresh). Right away, I realized I had some serious fires to put out. The customer base needed to be cut in half. The staff turned over. Marketing wasn’t even turned on. It was go time.
So, I rolled up my sleeves and got deep in the weeds. And what I quickly realized was this: the day-to-day reality of running this business looked nothing like I had imagined. It didn’t align with my strengths. In fact, it pushed me into areas I dreaded. I started losing sleep. I cringed when the phone rang. I felt frustrated, overwhelmed—and worst of all—I started to resent something I was supposed to be building with pride.
Those feelings made it hard to justify investing more time, energy, or money. I felt like I was failing. And as a competitive person, that was a tough pill to swallow. But quitting? That felt like giving up.
So I kept going. I led the business for two years. I turned it around. We became profitable. And I’m proud to say I had built an exit strategy—and I took it.
The experience taught me a lot. I’m grateful for it. But here’s the biggest lesson: business ownership is hard enough. Trying to be someone you’re not just to make it work? That’s not success—that’s survival. And in my opinion, those aren’t the same thing.
Ok – now let’s talk about finding the FIT:
1. Define the Role You Want to Play
Before looking at brands or industries, ask yourself:
What kind of owner do I want to be?
There are generally three types of franchise ownership:
- Owner-operator – You run the day-to-day operations. Ideal for hands-on people who enjoy leading from the front.
- Semi-absentee – You manage the manager. Great for those who want to keep a job or pursue other ventures.
- Executive owner – You hire a team to run it and focus on strategy/growth. Suited for experienced leaders or multi-unit investors.
Fit Tip: Be honest about how much control, time, and energy you want to commit. And, a business needs to be “run” – so involvement will be required.
2. Match the Business to Your Strengths
What are you naturally good at? Are you a people person, a problem-solver, or a sales machine? Picking a franchise that complements your skills will make everything easier—from hiring to customer service.
Fit Tip: Franchising works best when you run in your lane—not force yourself into a role you’ll burn out in or dread.
3. Be Realistic About Your Time Commitment
How much time are you really willing to spend in the business?
- Want flexibility or to keep your day job?
- Want to replace your job and be your own boss full-time?
- Planning to build a team and scale fast?
- What does “part-time” or “full-time” mean to you?
Fit Tip: Everyone defines working hours and availability differently. Full-time doesn’t always mean 40 hours, especially if you came from Wall Street! Do you want to work weekends? Evenings? Many people underestimate the time it takes to launch and stabilize a business. Start small and grow into a bigger commitment.
4. Think About the Customers You Want to Serve
You’ll be interacting with customers—either directly or through your staff. So ask yourself:
- Do you want to work with families, professionals, or businesses?
- Do you prefer high-touch service (like tutoring) or transactional models (like QSR)?
- Are you drawn to community impact, or do you just want a recurring revenue machine?
Fit Tip: Passion isn’t everything, but liking who you serve definitely helps on tough days.
5. Consider the Staff You’ll Need to Hire and Manage
The type of business you choose will determine the kind of team you’ll build.
- Food & retail: High turnover, entry-level roles, strong training systems required.
- Fitness or education: Staff with certifications or niche skills.
- Home services/B2B: Techs, sales reps, or customer service pros.
Ask yourself:
- Am I comfortable hiring and managing hourly employees?
- Do I want a lean team—or a larger operation with more complexity?
- Would I rather manage specialists or generalists?
Fit Tip: Your ability to lead and retain the right team can make or break your business.
6. Align Your Personal Goals with the Franchise Model
Finally, ask the big-picture questions:
- Do I want time freedom, financial growth, or both?
- Is this franchise scalable? Sellable?
- Will I still be happy doing this in 5–10 years?
Fit Tip: This is your business—make sure it aligns with your definition of success, not someone else’s.
Final Thought: The Best Franchise Is the One That Fits YOU
Franchise ownership is a powerful vehicle—but only if you choose one that aligns with your strengths, goals, and lifestyle. The right franchise won’t just make you money—it’ll make you better at what you love to do.
So before falling in love with a brand or business model, ask:
- What role do I want to play?
- Who do I want to serve?
- Who do I want to work with?
- What kind of life do I want to build?
Fit Tip: Answer those honestly—and the right franchise will be easier to uncover. You will know what questions to ask, what to look for and with the help of The Franchise Fit Company, find your way into business ownership with the RIGHT franchise for YOU.
Thinking about franchise ownership but unsure where to start? Let’s connect—I help aspiring owners find the right fit based on who they are, not just what’s trending.
