Benefits of Franchising

May 9, 2016 7:09 am

When people think about franchising they probably think about fast food restaurants or retail shops that spread from one area of the country to another. While this is a common impression, franchising is simply a method for expanding a business and distributing goods and services through a licensing relationship. Specifically, a franchise is an arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name, as well as certain business systems and processes, to produce and market a good or service according to certain specifications. Franchising is a business strategy that has many benefits. Let’s examine how franchising can be advantageous for your business.


  • Proven Format – franchises use a proven marketing and business plan format. Due to this, franchises have a higher rate of success than start-up businesses.Franchises often have an established reputation and image, proven management and work practices, access to national advertising, and ongoing support.
  • Balance of Independence and Corporate Support – Franchises offer the independence of small business ownership supported by the benefits of a big business network. With the backing of the larger franchise it is easier to get financing and launching the business. The bigger business network gives support for initial training, securing a location and operating under the franchise’s business model. Corporate headquarters of large franchises are ready with advice and expertise for making your business the best it can be. Many companies help franchisees by offering loans to help cover startup expenses, and some (especially larger companies) even offer management and technology training for your employees.
  • Brand Recognition – The biggest benefit of owning a franchise is brand recognition. Most franchises are well-known companies with established customer bases. The logo, slogan and company reputation is many times, recognizable. Owning a franchise instead of starting up a new business saves you the time and effort of building a reputation and attracting customers.


If you are considering franchising locally or nationally, check into the requirements of the larger business network and how the support, branding and proven format can help you get started in a new business venture.

Categorised in: , ,