The business model of franchising has been called one of the greatest ever developed. Its popularity has to do with its proven track record of success, and the relative ease in which people can become franchise business owners. 

There are several benefits that you can own while franchising your business:

1) Lower costs;

Unlike employees, franchisees make an initial payment in return for becoming a part of your business and then they continue to pay you a percentage of their revenue, throughout the duration of their Franchise Agreement.

2) Simpler management;

Franchisees are themselves responsible for the day-to-day running of their business units and they must do this strictly in accordance with the Franchise Agreement and Operating Manual. As franchisees have invested their own hard-earned money, they do not require the detailed level of management which would be needed for employees.

3) Faster expansion;

The benefit of self-financing business units and a simplified management structure as described above usually means that franchised networks can be expanded more quickly than company-run networks. Franchising is all about replicating a clear and successful business formula and, provided the franchisor is prepared to make a reasonable investment in marketing at national level, the brand can quickly be expanded nationwide.

4) Less recruitment;

On purchasing their franchise, the franchisees are really taking a decision to stick with their chosen business for the long term. As for recruitment of staff within the franchises themselves, the responsibility for this task clearly rests with the franchisee, not the franchisor.

5) Better market penetration;

Franchisees are normally well established as part of the local community, either on a personal level or as a result of their past business activities. This can give them a very significant advantage in gaining new business for the franchise at a local level.

6) Greater commitment;

Franchisees have invested in their business and know that they can benefit directly from its success.

7) International potential;

If you have longer-term aspirations to expand your business internationally, the franchise system again has many advantages.


Developing a franchise is a challenging undertaking and only advisable when armed with a wealth of practical experience. This is where EnterHow can assist!

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