Franchise vs Starting From Scratch (Most People Get This Wrong)

Introduction

If you’re thinking about starting a business, this is one decision that will shape everything that comes next. Do you build something from scratch, or do you buy into a franchise?

I’ve seen a lot of people get this wrong. They enter a franchise thinking it’s the same as running their own business, then feel frustrated when they realise there are rules, limits, and systems they must follow. This article is for people seriously weighing up franchise opportunities versus starting alone and wanting clarity before they commit.

I’ve built Little Boomers Basketball from the ground up and grown it into a national basketball franchise. What I’m sharing here is practical, real-world insight from experience, not theory.

This article is based on a recent live breakdown by Little Boomers Basketball founder, Emile Koorey.

Watch the Full Breakdown

Control vs Freedom

This is the biggest difference between a franchise and starting from scratch.

When you buy a franchise, you are your own boss, but you operate under a franchise agreement. That agreement sets clear rules about what you can and cannot do.

Examples of where control shows up in a franchise:
• Approved suppliers for marketing or equipment
• Limits on what products or services you can offer
• Brand standards you must follow

If you want full freedom to make every decision yourself, a franchise will feel restrictive. If you are comfortable trading some freedom for structure and systems, a franchise can be a good fit.

If freedom matters more than speed or support, starting your own business is usually the better option.

Vision vs Your Own Direction

When you join a franchise, the long-term vision is already set by the founder.

As a franchisee, you don’t control where the brand is heading in five or ten years. You are buying into someone else’s roadmap.

This works well if:
• You agree with the direction of the brand
• You don’t want the pressure of setting vision and strategy
• You prefer execution over big-picture planning

If you want to build something entirely your way, with your own mission and end goal, starting from scratch makes more sense.

Upfront Investment vs Growing Costs

Franchises usually require an upfront investment. That fee gives you access to systems, training, branding, and proven processes.

Starting your own business often has no big upfront fee. You can begin small with a basic website and minimal tools.

But here’s what people miss.

As your own business grows, costs grow too:
• Better technology
• Staff and contractors
• Marketing and advertising
• Operations and admin support

The difference is timing. With a franchise, the investment is clear upfront. With your own business, the costs show up gradually as you grow.

Speed to Market vs Slow Build

Franchises move faster.

Most franchises can launch a new location within 30 to 90 days because the process has been done many times before. Venues, marketing, training, and systems are already mapped out.

Starting from scratch is slower:
• You test ideas
• You learn through trial and error
• You build systems as problems appear

Neither is wrong. The question is how patient you are and how quickly you want momentum.

Support vs Doing It Alone

This is one of the main reasons people choose a franchise.

In a good franchise, you get:
• Ongoing guidance
• Operational support
• People to call when you’re stuck

That said, not all franchises deliver the support they promise. This is where due diligence matters. Talk to existing franchisees. Ask how support actually works day to day.

Starting your own business can be rewarding, but it is often lonely. You solve problems alone, especially early on.

Proof of Concept

A franchise already knows the product or service works.

The model has been tested. The pricing, delivery, and customer demand are proven. That reduces risk.

When you start from scratch, you are testing everything yourself:
• Does the market want this
• Will customers pay for it
• Does the model scale

Proof of concept doesn’t guarantee success, but it removes a lot of guesswork.

Ongoing Fees vs Full Control

Franchises have fees. These can include royalties, admin fees, or marketing contributions. These fees are set by the franchisor and outlined in the agreement.

You don’t get to turn them off if you don’t like them.

In your own business:
• You control every expense
• You decide what stays and what goes

If you want a deeper breakdown of how fees really work, it’s worth reading our earlier article on royalty fees and what franchise owners actually pay.

Common Mistakes People Make

• Assuming a franchise gives total freedom
• Not reading the franchise agreement closely
• Believing all franchises offer the same level of support
• Underestimating how long a solo business takes to grow
• Ignoring ongoing fees until after signing

Key Takeaways

• A franchise trades freedom for structure and speed
• Starting from scratch gives control but requires patience
• Franchises offer proof of concept and support
• Solo businesses offer flexibility but higher uncertainty
• The right choice depends on your goals, not hype

FAQ: Common Questions People Ask

Is a franchise safer than starting a business?
A franchise reduces certain risks by using a proven model, but it doesn’t remove risk entirely. Success still depends on effort and execution.

Can I run a franchise my own way?
You have flexibility within set boundaries. The core systems and brand rules must be followed.

Is it cheaper to start from scratch?
Upfront, yes. Long term, both paths require investment as the business grows.

What if I don’t agree with the franchisor later?
This is why alignment upfront matters. You need to be comfortable with the franchisor’s vision and leadership.

Do all franchises offer good support?
No. Always speak to existing franchisees to understand the real level of support.

Want to see if owning a Little Boomers Basketball franchise fits your goals and lifestyle?
Explore available locations here.

What to Look for in a Franchise (That No One Tells You)

Buying a franchise is exciting. You picture being your own boss, building something local, and finally working on your terms. That excitement can also blind people to red flags.

This article is for anyone in the franchise discovery phase. If you are talking to brokers, founders, or franchise sales managers and trying to work out what is real and what is sales talk, this is for you.

I am a franchisor myself and the founder of a kids basketball franchise. I sell franchises for a living. That also means I know exactly where people get caught out when they do not do proper due diligence.

This article is based on a recent live breakdown by Little Boomers Basketball founder, Emile Koorey.

Watch the Full Breakdown

Speak to At Least Five Franchisees

This is the most important step and the one people rush or skip.

When you talk to a franchisor or broker, they are paid when you buy. That does not make them dishonest, but it does mean you must validate what you are told.

You should personally speak to at least five existing franchisees.

Your goal is simple. Check if what you are hearing matches reality.

Ask questions like:

• What surprised you after joining?

• What was harder than you expected?

• Would you buy the franchise again if you had the choice?

If the answers line up with what the franchisor promised, that is a good sign.

If franchisees tell a very different story about support, marketing, or communication, that is a red flag.

If you are not allowed to speak to franchisees at all, stop immediately. That is not normal.

Review the Franchise Disclosure Document Properly

The franchise disclosure document is not optional reading. It is the most important document in the entire franchise agreement.

This document lists every fee the franchisor is allowed to charge you during the life of the franchise.

That includes:

• Ongoing fees

• Marketing fees

• Extra charges that may not come up in early conversations

You should review this document carefully with a franchise solicitor.

If you skip this step, you risk being shocked later by invoices you did not expect. That is not bad luck. That is poor preparation.

A common example is a quarterly marketing fee that was never mentioned verbally but is clearly listed in the disclosure document. Once you sign, those fees are enforceable.

This is also why understanding fees like royalties matters. If you have not already, it is worth reading our breakdown of royalty fees and how they work in practice:

Check for Litigation and Disputes

No franchise network is perfect. Some level of dispute is normal.

What you are looking for is patterns.

Every franchisor must publicly disclose:

• Current disputes

• Litigation

• Breach notices

This information is available through the franchise disclosure registry and is updated regularly.

You should ask:

• Are the same issues coming up repeatedly?

• Are disputes mostly about fees, support, or performance?

• Do franchisees feel heard when problems arise?

A small number of disputes can be healthy. A recurring theme usually is not.

Franchise Resales and Churn Explained

A common question people ask is whether franchisees are selling their businesses and why.

Some turnover in a franchise network is normal.

People sell because:

• Life circumstances change

• Goals shift

• They move locations

• They want to do something different

What is not normal is a large number of franchisees selling at the same time.

If you see heavy churn in a short period, you need to investigate further. It could point to a broken model or unmet promises.

Do not look for a franchise where nobody has ever sold. Look for one where exits make sense and are explained openly.

Common Mistakes People Make

• Trusting sales conversations without validating with franchisees

• Skimming the disclosure document instead of reviewing it properly

• Assuming no disputes means a perfect system

• Letting excitement override due diligence

• Rushing to sign without asking hard questions

Key Takeaways

• Always speak to at least five franchisees

• Validate claims with real experiences

• Review the franchise disclosure document with a solicitor

• Understand all fees before you sign

• Check litigation and dispute patterns

• Healthy churn is normal, abnormal churn is not

Buying a franchise is a big decision. Slow down, ask better questions, and protect yourself.

Want to explore whether owning a Little Boomers Basketball franchise could be the right fit for you?

Download the Franchise Success Blueprint here.

Royalty Fees Explained: What Franchise Owners Really Pay

One of the most misunderstood parts of buying a franchise is the royalty fee.

Most people focus on the upfront cost and barely ask about what they’ll be paying every month after they sign.

That’s a mistake.

Royalty fees affect your profit, your long-term cash flow, and your experience inside a franchise network. If you don’t understand them properly, you can end up in a franchise that looks cheap upfront but costs you more over time.

This article is for anyone researching a franchise and wanting to understand how royalty fees really work, without sales talk or confusion.

This article is based on a recent live breakdown by Little Boomers Basketball founder, Emile Koorey.

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Watch the Full Breakdown

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What Are Royalty Fees in a Franchise?

A royalty fee is an ongoing payment that a franchisee makes to the franchisor for the life of the franchise agreement.

Unlike the initial franchise fee, which you pay once, the royalty fee is paid continuously. That means it directly impacts your profit and loss every year you operate the franchise.

Royalty fees usually cover:
• Use of the brand and intellectual property
• Systems and technology
• Ongoing support
• Network development
• Head office staff and infrastructure

If you’re going to pay a fee for the lifetime of your franchise, it’s something you need to fully understand before signing anything.

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What Good and Bad Franchisors Do With Royalties

Not all franchisors use royalty fees the same way.

Good franchisors reinvest royalties back into the business. That usually means:
• Better systems
• Stronger support
• Improved technology
• Marketing and brand growth
• Long-term network strength

Bad franchisors often use royalties to fund personal lifestyles or simply keep the lights on. They don’t reinvest, don’t innovate, and don’t improve the franchise over time.

A warning sign is when:
• The brand hasn’t changed in years
• There are no system upgrades
• Franchisees say nothing new has been introduced
• There is little visibility on where money is being invested

A higher royalty fee is not automatically bad. Sometimes it means the franchisor is actively building a stronger franchise network.

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The Three Types of Franchise Royalty Models

Most franchise systems use one of three royalty fee structures.

Percentage of Revenue Model

This is where the franchisor takes a percentage of your gross revenue.

For example:
• You make $1,000
• The royalty is 10 percent
• You pay $100

This model aligns incentives. If the franchisee does well, the franchisor does well. If the franchisee earns nothing, the franchisor earns nothing.

Fixed Monthly Fee Model

This is a set dollar amount paid every month, regardless of performance.

For example:
• $500 per month
• Paid whether revenue is high or low

The upside is certainty.
The downside is there is less incentive for the franchisor to help grow your revenue.

Hybrid Model

This is usually written as:
• A percentage of revenue or
• A fixed dollar amount
• Whichever is greater

This model protects the franchisor if a franchisee underperforms, but it can place pressure on franchisees during slower months.

Understanding which model a franchise uses is critical, because it changes how risk and reward are shared.

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Royalty Fees vs Marketing Levies

Another common point of confusion is the difference between royalty fees and marketing levies.

They are not the same.

Royalty fees:
• Pay for systems, support, brand, and infrastructure

Marketing levies:
• Are specifically used for advertising and lead generation

Some franchises charge both.
Others bundle marketing into the royalty fee.

The key is clarity. You should know exactly what you are paying and what that money is used for inside the franchise.

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Common Mistakes People Make

• Only focusing on the upfront franchise fee
• Choosing the cheapest royalty without asking why
• Assuming all royalty fees are bad
• Confusing marketing levies with royalties
• Trying to negotiate special royalty deals

Negotiating royalty fees can also create problems inside a franchise network. When one franchisee gets special treatment, it can damage trust and culture across the group.

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Key Takeaways

• Royalty fees are paid for the life of the franchise
• They directly affect your long-term profitability
• Cheap royalties are not always better
• How royalties are used matters more than the percentage
• Understanding the royalty structure is essential before signing

A franchise is a long-term partnership. Royalty fees are part of that relationship, not just a number on paper.

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If you’re researching franchising and want to understand how a real, system-driven basketball franchise operates, you can learn more here.

Top Tips For Coaching Children’s Sports

Success in kids’ sports is rarely found on a scoreboard. Sure, a win-streak looks great on paper, but the real victory is watching the shy child finally call for the ball, or the toddler landing their first coordinated jump.

Mastering coaching kids sports means being a mentor first and a tactician second. At Little Boomers Basketball, we specialise in creating “brave spaces” where mistakes are celebrated as progress. We’ve distilled our expert-led approach into these actionable tips to help you inspire a generation of resilient, active, and confident kids.

 

Focus on Fun and Fundamentals

In sport, fun is both the reward and the delivery system. A child who is laughing is engaged, and an engaged brain retains skills far more effectively than one that is anxious. When coaching kids’ sports, the goal is to mask repetitive drills as high-energy games:

• Gamify the Basics: Instead of standard dribbling lines, try games like ‘tag’ where players must keep their ball bouncing. This builds coordination without the monotony of a drill.
• Prioritise Effort: Celebrate the brave attempt at a shot as much as the basket itself. This reduces the fear of failure, which is the biggest hurdle in sports coaching for children.
• Normalise Mistakes: If a child becomes frustrated, pause. Name the frustration and show them how to reset.

Our sessions are designed for high engagement and retainment, so every movement serves a developmental purpose, while feeling like pure play. Want to see how this looks in practice? Check out our Programs & Classes.

For further reading on this subject: From Shy to Confident: How Basketball Helps Kids Come Out of Their Shell.

 

Communicate Clearly and Positively

Children rarely fail a drill because of a lack of talent; they usually fail because they’ve misunderstood the instruction. To be a successful children’s sports coach, you must bridge the gap between adult logic and a child’s imagination. So, keep your instructions brief (ideally under 30 seconds). Use clear demonstrations rather than long explanations.

At Little Boomers, communication evolves with the child. For our Preschool Boomers (Ages 3–4), we use stories and animal movements to teach balance.

By the time they reach our Mini Boomers, Little Boomers, or Mighty Boomers groups, we introduce more technical cues, while keeping the feedback constructive (replacing “don’ts” with “dos” keeps the child’s internal dialogue confident).

 

Build Team Spirit and Social Skills

The most valuable lessons in coaching kids’ team sports happen during the quiet moments: the high-five after a turnover or the way a team handles a loss. For a shy child, the court is a safe laboratory to practise bravery.

• Rotate Leadership: Give every child a turn to lead a warm-up. This builds a sense of responsibility.
• Encourage Peer Support: Make it a rule that teammates cheer for one another’s efforts, not just their goals.
• Focus on Collaboration: Use games that require multiple passes before a shot can be taken.

We believe basketball is a tool to help children grow into community leaders and resilient role models.

 

Keep Training Sessions Structured but Flexible

The best kids’ sports coaching tips often boil down to one word: adaptability. Even with a science-backed plan, coaches must be ready to simplify drills if children struggle or lose focus.

At Little Boomers, our coaches follow a structured framework that intentionally leaves room for creative adjustments. In doing so, every session meets our developmental goals without the pressure of a “one-size-fits-all” approach.

The result is the Better with Boomers Pathway – a clear, stress-free progression for every young athlete.

 

Final Thoughts – Inspiring the Next Generation

The true impact of a great coach can be found off the court, in the child who walks that little bit taller because they mastered a new skill.

We are committed to providing a nurturing environment where every child feels empowered to achieve their best. When we coach with patience, we help shape the confident, kind, and resilient adults of tomorrow.

Join our community of passionate coaches inspiring Australia’s next generation. Learn how you can get involved here.