Self Financing: Due to the fact that franchisees are paying for the privilege of becoming a franchisee you are, in effect, using their capital to fund the growth of the organization
Highly Motivated Franchisees: Franchising has become the preferred route to growth by many successful businesses because unlike employees, franchisees have the motivation to succeed. After all they've invested heavily in the business to begin with
Rapid Growth: Because of the capital investment by franchisees, the growth of the business can be very fast compared to more conventional methods
Duplicated Success: Since franchisees have strict guidelines and systems to operate within, successful businesses (based on the initial pilot business - your business) grow in a much shorter time
Simple Quality Control: By the nature of a franchise agreement, franchisees have a contractual duty to maintain high levels of service and quality (those expected by you - the franchisor)
Low Financial Risk: Although there are of course risks associated with franchising your business, these are mitigated because of the financial investment provided by franchisees
Low Staff/Franchisee Turnover: Unlike many 'normal' businesses, your franchisee turnover will be low due to the fact that they've invested in your business
Long-Term Management: Since franchisee turnover is low, you - the franchisor can invest with confidence in the long-term training and success of your franchisees
International Market Penetration: International expansion becomes easier, faster, and carries far less risk
Reduced Overhead: The costs associated with franchising are far less than having to fund expansion internally |
