10 Benefits of Franchising

Being an entrepreneur is both a revelation and a risk. But franchising gives you the former factor manifold and reduces the latter extensively. Franchising not only helps you achieve your dream of becoming a successful entrepreneur at a young age, but also escalates your learning curve in the business world by an impressive degree. Here is our short list of the 10 topmost benefits of franchising.

1. Franchising has a higher chance of success versus a solo venture as, the franchise has all the market research, knows the market with regards to the brand. For a budding entrepreneur franchising is a better option than facing the risk of starting on their own and experimenting with something new.

2. Franchising gives budding entrepreneurs a chance to start off on their own even without the long wait of gaining enough experience. A franchisor helps the franchise bridge the gap by familiarizing him with the procedures of management, accounting, personnel and facility. The entreprepreneur by becoming a franchise learns how to apply all these skills effectively and learns the ways of the business world. 

3. Franchisors provide franchisees with hands on training with a set of defined rules and modes of operation for the brand which leaves very less room for error and thus reduces the factors for failure.

4. Franchisors help franchisees with a feasible business model based on the tried and tested formula for success and well-established marketing strategies to boost up the sales.

5. The Franchisor’s experience along with the expertise of his management team increases the chances of success and reduces risk factors. This experience also comes in handy when the franchise gains training and has to take important marketing/sales decisions.

6. Franchisees feel confident of their products as the brand is an identified one in the market and so has a ‘Higher Selling Power’. The franchisees thus capitalize on the brand’s established name.

7. Group Purchasing of goods from the Franchisor lowers cost for the franchise.

8. Marketing done of the Franchisor at an international or national level, benefits all franchisees. And being part of the same brand family, they only benefit from all the strategies.

9. Established franchisors with great brand popularity ensure the new franchise gets enough attention and recognition once his store is part of the retail family.

10. A network of fellow franchisees acts as a moral support system and a great source of business advice since they are part of the same brand family.


We would love to know about your experiences. Kindly share your insights with us. Tell us according to you what are the many boons of franchising.