# What Is The Difference Between Franchise Vs. Sole Proprietorship | SkillsAndTech

Both the sole proprietorship and franchise method of starting a business are popular. Whichever option a entrepreneur chooses depends on the type of business being run.

Table of Contents

## Ownership

**See Also: How Much Does it Cost to Start a Chicken Restaurant**

In a sole proprietorship, one person owns a business, along with any trademarks, service marks, trade names or service symbols. In a franchise, the franchiser owns all of the above, except for the individual businesses, which are owned by individuals who are given permission to sell trademarked products.

## Expert Insight

Franchises receive expert insight from the franchiser on the ins and outs of running the particular business, while sole proprietors are typically on their own.

## Types

**See Also: How to Start a Medical Uniform Franchise**

There is only one type of sole proprietorship, while there are two types of franchise — the licensing of a brand and the licensing of a business model.

## Costs

Sole proprietorship businesses do not have to pay fees, but they do have to pay money in order to develop products, branding and services. Franchises do not have to pay to develop products, branding and services.

## Death

**See Also: How to Sell a Franchise Idea**

The death of the owner of a sole proprietorship often brings an end to the business, while the death of the owner of a business selling products from a franchise does not bring an end to the franchise.

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