What are the advantages of franchising your business?
- Franchising is a great way to find talented people to manage your locations and give them an incentive to work harder than they would if they were your employees. Franchised business tend to operate more successfully due to the fact they have motivated owner operators.
- You can expand your business using someone else's capital and the costs of franchising your business is usually recouped after the first couple of franchise sales.
- Franchising permits multiple units to be opened at the same time or in quick succession resulting in rapid expansion and increased market dominance.
- Due to their purchasing power franchisors can often negotiate volume discounts from vendors and suppliers.
- You get the benefit of an increased advertising marketing and advertising budget due to the contributions paid by all franchisees.
- Franchisors earn revenue from many sources, including initial franchise fees, royalties, marketing contributions, sale of products, training fees and rebates from suppliers.
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