For Start-ups

Starting a business from scratch can be a bit daunting and very difficult to build a following. Whereas, taking on a franchise gives  the franchisee a blueprint (tested and working strategies) to utilise and start making a good number of sales from the get go. Customers will already be well versed with the brand, meaning the brand has loyal, returning customers. The brand owner won’t have to worry about marketing as much, since the franchisees will be the ones that market within their local community. Hence, the risk of failing as a business is fairly low.

For businesses

Reduces workload for the owner, opening up more time to direct their attention towards developing the business. The franchisee will take care of hiring the right staff and manage any problems that occur. Initially it will be the business owner’s responsibility to provide the right training and support, but once the franchisee understands their responsibilities and what's expected of them, the owner will only have to be available to answer questions.

• Increase Network - It is a faster process to grow the business network across a number of different locations. The franchisee will provide the financial backing to drive the business in your selected area. The cost will also be lower due to the franchise fee including the equipment and set up cost, which come from the franchisee.
• Higher market penetration - Franchisee’s are likely to be well known within their community. Persuade the franchisee to use this advantage and bring new customers for the brand. Being established in the community, living in the franchise area and showing the locals that they have committed to the success of the franchise would encourage more market penetration.
• Lower probability of recession - It’s not likely to be completely recession-proof, however brands who have adopted the franchise model have been found to survive recession better compared to brands who didn't. The reason possibly may be that franchisors aren’t usually subject to as high levels of overheads and debts as non-franchised business owners.

In summary, franchising is a good business model for many industries. If you are considering expanding your business, it is a good idea to consider franchising.