Advantage of franchising to franchisee

Advantages to Franchisors

• Firstly, franchising is a great way to expand a business without incurring additional costs on expansion. This is because all expenses of selling are borne by the franchise.
• This further also helps in building a brand name, increasing goodwill and reaching more customers.

Advantages to Franchisees

• A franchise can use franchising to start a business on a pre-established brand name of the franchisor. As a result, the franchise can predict his success and reduce risks of failure.
• Furthermore, the franchise also does not need to spend money on training and assistance because the franchisor provides this.
• Another advantage is that sometimes a franchisee may get exclusive rights to sell the franchisor’s products within an area.
• Franchisees will get to know business techniques and trade secrets of brands.