Franchising is a method for the sale of products or services, or a combination of both, under a trademark or trade name, using a marketing plan or system which has been developed by the franchisor. The franchisor is the one who has developed the product or service, the trademark and trade name, and the marketing system through which the product or service will be sold.
Benefits of Franchising
Although franchising offers many benefits to potential franchisors, the most important of these can be summarized as follows:
A. You can expand your business, and your market penetration, more rapidly through franchising than by using internal, non-franchised, expansion methods.
B. Your business expansion can be financed externally rather than internally.
C. Your expanding business does not need to increase its employee base significantly.
D. The franchisee at each franchise location is an entrepreneur with a personal interest in the success of the business, rather than merely a paid manager.