Chosen by Asker

Because of its basic nature, franchising leads to rapid growth because the franchisees provide the expansion capital. As a franchise system expands into, say, hundreds of units, a series of positive events occur. The franchise name becomes well-known because people see it everywhere. Also, most people associate size with success, so typically, the bigger the franchise, the more successful it must be. The large number of units allows the franchisor to advertise and market their concept heavily, and success brews even more success. The franchise can buy in bulk at significant discounts, which in turn are passed down to the franchisees.

Source(s)

Me. I'm a recruiter for the franchise industry with several years experience helping franchise seekers identify and attain their ideal franchise.

by bake

1 month ago

Asker's Rating: 

The biggest difference between franchising and owning a store is running the day to day business. If you own your store, you need to oversee everything on a day to day basis and this could cost a lot of money and time especially when you want to expand your business around the country or even overseas, and sometimes you might not know the local business environment very well without market research. If you run a franchise store, you only need to oversee the setting up and train the franchisee initially. After that, apart from looking at the sales figures regularly, you might only need to check on the store once or twice a year. You get paid for what you do, a franchise store most probably would get you no more than 7-8% profit while a self owned store could give you as much profit as you can make.

by longliveabcdefg- 1 month ago