Franchising (Part III)

Advantages for Franchisor:

Rapid Growth is possible
Less capital required
Franchisees make highly motivated owner-managers
Lower monitoring costs
Chain can include some directly managed outlets
Scope for internationalisation
Low-risk way to test/develop a market

Advantages for the Franchisee:

Retains some independence
Rewards proportional to success achieved
Less start-up risk
Loans more readily available
Support and advice in setting up and operating
Use of well-known brand name
National/international marketing activity