People franchise their businesses for three main reasons.
The first, and probably most important, is profit. The second reason centres on strengthening your team. By expanding through franchising, franchisors are utilizing the skills, entrepreneurial talents, and, dare I say, the sweat equity of franchisees, who are prepared to work harder than employees with no financial stake in the business. And the third is expansion.
Franchisees, on the other hand, are looking to buy franchised businesses for three different reasons. First, because of the know-how they hope to glean from the Franchisor’s training program. Second, for the benefits of being associated with the Franchisor’s “brand†and trademark. And third, from the volume purchasing discounts that can come from being part of a larger buying group that the franchisor has hopefully created.
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