Why Franchise?

Franchising continues to be one of the most innovative and dynamic growth-business models. And this is clear in the way more and more businesses across industries are adopting franchising as their main growth model. Whether your organization lacks the capital, time or human resources, franchising answers these key challenges.



Franchising transfers almost the entire cost of expansion to franchisees. Franchisees own and operate the business using their business’s working capital. What is the cost to the franchisor? The cost of the franchise program including associated cost of expansion are eventually assumed by franchisees. How? Franchisees pay the franchisor an up-front fee (also called franchise fee). So in conclusion, franchising can become a high-impact, low-risk revenue source.



Anxious to move quickly before the competition catches on? Got a hot, new concept? Want to exploit a new marketing opportunity? Franchising is one of the few models that allow businesses to expand fast. A franchise can grow fast simply by selling individual units. Some franchises can grow even faster by selling multiple units or territories to sub-franchises. Either way, franchising can be faster than opening company-owned units.



A good manager is hard to find. And franchisees make excellent managers. Why? Because they have a vested interest in the business. They own it. Through franchising, a company gets both: dedicated managers and relief from the problems associated with hiring and managing personnel.