Why Should You Franchise?
The answer is simple. You should franchise your business if you want to grow your business rapidly and use other people's resources for that rapid growth.
What Are the Advantages of Franchising?
* Advertising Royalties contributions by the Franchise Owners
* Sale of products and services to the Franchise Owners
* Sale an/or rental of equipment, services or locations
* Rebates from vendors and manufacturers.
The answer is simple. You should franchise your business if you want to grow your business rapidly and use other people's resources for that rapid growth.
What Are the Advantages of Franchising?
- Expanding With Other People’s Money. In franchising, the capital needed to expand the business is provided by the Franchise Owners.
- Motivated Management. Franchise Owners are very motivated to operate the business correctly and efficiently, because their capital is at risk and they are contributing their time and energy.
- Rapid Expansion. There is no other way to grow as rapidly as franchising provides.
- Greater Buying Power. The large number of units allowed by franchising enables the Franchisor to negotiate to purchase products, equipment and services on behalf of the entire system and at greater savings to the Franchise Owners. This positively affects the bottom line of the business.
- More Efficient Development and Use of Marketing Materials. Most Franchisors require that the Franchise Owners pay an advertising royalty to the Corporation. These moneys are pooled to create and place top-quality advertising materials for the Franchise Owners. Again, it is the advantage of spreading cost over a large number of franchises, so that everyone benefits.
- Additional Profit Centers. In addition to the traditional method of obtaining revenue through franchise sales, there are other sources of income for the Franchisor to take from. These include:
* Advertising Royalties contributions by the Franchise Owners
* Sale of products and services to the Franchise Owners
* Sale an/or rental of equipment, services or locations
* Rebates from vendors and manufacturers.