Despite what may be said about the advantages of a small business, no one can deny that size does matter and that the “law of greatness” is alive and well, especially in the world of franchising. Small businesses have trouble competing with franchised outlets that are large and have a strong brand behind them. Still, that’s only half of it, you also have to consider the economies of scale involved on the buy end.

These economies of scale provide a small part of the percentage for the franchisor to be more profitable to reinvest in its brand and the services it provides to its franchisees, while also hopefully providing lower costs for franchisees in the system. A small independent business simply cannot keep up with a franchised POS, they have to work harder and smarter than their franchised POS competitors.

When considering a franchise business opportunity, you must remember one of the main advantages of a franchise business over any other small business for sale; and that advantage is the economies of scale. In fact, economies of scale often allow a franchised business to compete head-to-head with a large corporation with multiple outlets, since they also have economies of scale. Still, the franchise store also usually has an owner/operator with the in-game skin.

If you were going to bet on a business or a brand, whether local, regional or national, you should bet on the franchise, since they have all the advantages including one of the most important; scale economics. Because in the end size does matter, it matters a lot, so think about this.