Tuesday, January 5, 2010

Why Franchise?

Because franchising solves the problems of...

Money. Franchising transfers the cost of expansion to franchisees. Franchisees provide the capital to open new locations. You retain control over the business system and never have to give up equity for investors.

People. Franchisees make excellent managers. Why? Because they have a vested interest in the business. It's not just a job - they own it!

Time. It's faster to open franchises than company-owned units, because franchisees use their own resources to open new locations. You simply supervise the process. You can have multiple locations opening simultaneously and don't have to take on debt with each new opening.

And franchising has Other Advantages...

Lower Risk. The legal, operational, and capital risks of business are shared with your franchisees.

Buying Power. With more locations, your power to negotiate products, supplies, and services increases, benefiting both franchisees and company-owned units.

Quality Control. Franchisees are legally required to follow your business system.

A Strategy For Better Business Operations. You are free to focus on "big picture" issues rather than day-to-day operations.

A Solution to Dealer Problems. You can replace under-performing dealers with vested, hard-working franchisees.

An Exit Strategy. Franchising improves business growth and profitability potential, so your business is more saleable.


  1. If you are considering franchising out your business model I would recommend that you first research and make yourself well aware of any potential threats that lay out there waiting for you that could cause you and your business severe problems particularly during the early stages of trying to get your franchise business established in the franchise market place.

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  2. A big advantage of buying a franchise is it provide a training when we buy a business from a franchise and they also give details about our business and how could we get success in our business. At present franchises also gives a perfect business logos, stationary and websites of our business. So I think we would to must buy a franchise opportunity for staring a successful business.
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