The principle is simple - some companies choose to grow, not by developing in the conventional way but, by granting a franchise license to others to sell their product or service. There are clear advantages to this:
- You don't have to come up with a new idea - someone else has had it and tested it too!
- Larger, well-established franchise businesses will often have national advertising campaigns and a solid trading name
- Good franchise businesses will offer comprehensive training programmes in sales and, indeed, all business skills
- All franchisors provide an up to date operational guidelines in the form of an operations manual as a reference document for the franchisees.
- Good franchise businesses can also help secure funding for your investment as well as, for example, discounted bulk-purchases for outlets when you are in operation
- If customers are aware that you are running a franchise business, they will understand that you offer the best possible value for money and a consistent quality of service - although you run your 'own show', you are part of a much larger organisation
- Good franchisors also provide support to their franchisees and the franchise network on a pre determined basis.