Franchising offers many advantages as a method of expanding your business:
- Setting up a network of franchises requires less staff than a similar sized network of corporately owned outlets.
- Expansion of the business is much more cost effective as other business people are investing and supporting the growth of the business.
- Franchisees pay fees at the start of the agreement and on an ongoing arrangement, meaning that there is always money coming in to the business.
- Once the right systems are in place, expansion of the business can happen at an impressive rate – limited only by the ability to recruit, train and support franchisees.
- The business is likely to become much more robust as it is underpinned by determined franchisees, who want to run a successful and profitable franchise.
- Centralised purchasing means that the franchisor can benefit from discounted prices on goods from established suppliers and other operational efficiencies.
