Franchising has become a popular way of expanding businesses because it offers benefits to both parties. The franchisor can grow its brand and revenue without the capital costs and risks associated with opening new locations. While the franchisee can benefit from the proven business model, training and support of an established company.
What is a business franchise?
Franchising is a business model in which the owner of a successful business, known as the franchisor, grants the rights to use its name, brand, products, systems and services to another entrepreneur, known as the franchisee, in exchange for an initial investment or ongoing royalties.
In this article, we will provide an overview of franchising a business.
Advantages of franchising a business
Franchising a business can offer numerous advantages, such as:
- Brand recognition: Franchisees can benefit from operating under a well-established brand name that is recognised by customers.
- Proven business model: Franchisees can use a successful business model that has been refined over time, reducing the risks associated with starting a new business from scratch.
- Training and support: Franchisees can receive training and ongoing support from the franchisor in areas such as operations, marketing, finance, and legal compliance.
- Network of peers: Franchisees can benefit from a network of peers who can share experience, best practices and support, both within the same brand and across the industry.
Check your business loan eligibility to understand how much financing you can secure to invest confidently in your franchise opportunity.
