Benefits of Franchising
Benefits to Franchisor
The biggest talking point of being a franchisor is every franchise is actually as vested in your business as you are, instead of being just a ’employee’ of your business. Let’s look into the other prominent benefits of a franchisor.
Adding new outlets and expanding the network leads in creating a larger market base which in turn helps to leverage the brand better. Just by extending your name, you are spreading your brand as a franchisor to new markets.
Minimize Capital Expense
As a franchisor, you actually tend to cut down your costs in terms of infrastructure, equipment’s, salaries and working capital.
As franchisor and franchisee work hand-in-hand, thus business risk is also divided.
Benefits to Franchisee
Franchisee business is often referred as the ‘tried-and-tested’ form of business. Along with getting an on-going assistance from the franchisor, you get a ‘pre-developed’ model of doing a particular business. Let’s talk about the key benefits of managing a franchise business.
A franchise business enjoys a loyal customer base. The owner doesn’t need to bother about the ‘early days’ of business as customers are well connected with the brand as well as the products on display.
Lower Risk Cover than Start-Up
Having associated with an existing and successful brand evades the risk of failure of the business. Compared to start-ups, franchise business generally does well in terms of financial stability and growth.
Working under the umbrella of franchisor brings in ‘free’ brand advertisement and promotions. You ripe on the established reputation and existing brand value which helps you in maximizing your profits from day 1.