Advantages & Benefits of Franchise Model

1. Advantages & Benefits of Franchise Model Franchising is beneficial for both the buyer and the seller. The primary advantage for franchisors is that they can expand their business with someone’s money which could be a bit difficult to do through their own or borrowed money. The royalties and franchise fees collected by the franchisors are used to grow their business without possessing any tension to return the money to the lenders or offering the sole right of the business to others. The amount collected is used in various verticals such as train the franchisees, advertise& market the product, upgrade the quality of the products or services and set up the brand in the market. So there are various benefits of franchise model for a franchisor. There are many benefits of franchise model for franchisees as well which include golden opportunity to become an entrepreneur without curbing all the initial cost and risk to start a business, training, and support is provided, location guidance is also given, own the right to sell the products of a brand, use a well tested business model, bulk purchasing at minimal cost, assistance for marketing and advertising,

2. lead generation through the headquarters and main website, 24x7 support, guidance offered by the franchisors. Prospective downsides for the franchises encompasses; no right to act how they want, ineffective marketing & advertising campaigns, products & services have to sell as per the instructions, location guidance may not be fruitful at the time. So in a nutshell, investing a huge amount of money and taking the franchise for 10-15 years of time span can be a faulty decision if there is a change in the management and it’s not fit for the franchisees. Everyone is not fit for franchising. Some individuals can only flourish if they enjoy 100% right to take the decision, while others look for the trading part from the esteemed organization. To take cent percent advantage of the franchise partnership, it’s important that the buyer is congenial with the franchise model and abides by the values, culture and feel to accomplish the goals set by the franchisors and vice versa. So, the most important thing to be considered is that the interest area of both the franchisor and franchisees should be identical. This will assist to grow and expand together. Henceforth before getting into any formal commitment its best to communicate and figure out what and how things can be accomplished as this is the best way to experience the benefits of franchise model. Image Source: Franolaxy Consulting