For a company, franchising provides excellent opportunities for rapid expansion and creating the brand awareness in minimum period of time. It also develops the franchising
network across the globe and acceptance of goods and services according to the local needs. There are main five reasons why do companies franchise.
A proven Business
An established business model needs expansion when growing in other areas, it is called franchising. A franchise has built-in customer base, access to vendors, built-in support networks and very important recognized business name and reputation. Less time and energy is required in the start-up process.
Franchising is always a symbol of expansion and growth where franchisors place their expansion in the hands of those who are motivated to run a business. Obviously franchisee will strive to make the business successful because their financial life depends upon it. Through this process franchisors tap those markets that are difficult to target otherwise.
Franchising offers these individuals an opportunity to break free & own their own business whilst at the same time minimizing the risk that is natural in opening an entirely new business from scratch. Franchising reduces the start-up process and provides operating manual, checklist, training and business videos to the franchisees.
Skills and Commitment
One of the main advantages of franchising is skill and 100% commitment from franchisees that has a direct stake in business rather than managers and other employees of the business.